All Forum Posts by: Jeff G.

I was originally going to do a cash deal to seller (private mortgage from family member) for a property through a Realtor.  Then I found out the seller has several property's and is selling them one at a time.  I am very close to convincing the seller to let me preview all the properties and put together a deal for 2-3 of them with conventional mortgages.  The plan is to have the person who was willing to put up the cash for the first property put forth what will be the same amount but use the money for the down payments on 2-3 propertys instead of the cash purchase on the one.  I'm guessing I would need to form some kind of legal partnership to get the loans to go through.... 

I have a mortgage on my primary residence and one other investment property currently (with a private mortgage to the same family member)  

My thought was to pay back the 35-40K to my family member on a 5 year note like a car loan at 6-8% which they agree to. This will still leave manageable cash flow on the properties.

My concern is the banking side.  Would a blanket loan be an option, or Three separate traditional mortgages?  OR??.....

Sorry if this is a bit rambling.  But any insight?

Thanks,

Jeff

@Josh Nabors  Based on the information above what are you anticipating for annual cash flow?  

How much are you putting down? at what percent? for how long a term?

This would not be a deal I would be looking at personally.  

I have come across a couple instances recently of older individuals selling off their portfolios.  I thought forming relationships with area property managers would be a great thing to do to obtain leads as they may learn of customers who will be leaning towards off loading some of their properties.  Anyone have a success doing this?

I took an 80K hit on my first primary residence.  A combination of being young and dumb, thinking I would live there for WAY longer than I did, putting WAY too much money into a house that would become the nicest in the area and wouldnt get value back due to comps and buying at the peek of the market.

Sometimes its better to walk away from a bad situation and put yourself into a better situation.  

I would dump the house and buy one that cash flows with that 30K.

I seek out properties that have existing tenants.  My first duplex had tenants who were paying market rents, upper tenants had been there 5 years lower 7 years.  That's a dream scenario in my mind.

I am looking at another duplex right now similar situation, only these tenants are paying above market rents.  Cash flowing the day of closing is a beautiful thing.  

Completely with all of you and thank you for the responses.

I am looking at it from the perspective of estimating how much cash I will have to invest into the next opportunity. I am actively looking for my second duplex and will use some of the funds In my business account for closing costs.  If I buy a property prior to year end I do not want to be cash poor for tax purposes and have to use personal finances to cover them.

Thanks again all.

Thanks gents.

Why are income taxes never incorporated into cash flow calculations?  I am on track to have 6K positive cash flow in my first year for a house I bought this January.  I however don't have the slightest idea how much of that I am going to give to Uncle Sam.

How do you seasoned investors estimate this when purchasing and analyzing properties.

Thanks.

Jeff

Sheboygan is not a growing market.  Its a very industrial town with a very high percentage of the population renting.

Housing is dirt cheep in Sheboygan and you can find good cash flowing deals if you are patient.