All Forum Posts by: Micah Uveges

UPDATE
I spoke with the local bank that I work with and they offered me these terms:

-10 year note 2.75% above US Treasury Bond rate (4.34%)
-Amortized at 25 years
-10 year balloon payment. Either pay the loan or refinance at that time
-$200k in renovations is lumped into main loan with a draw period to use funds as needed. Interest only payments until renovation is done.

Thanks for the replies everyone! Is rolling a renovation loan into the main loan a pretty common practice? This is certainly what I would try to do.

Hello,

I am interested in the purchase of a 17-unit complex in my area and don't know where to start with the financing part of it. It is in rough shape and needs extensive renovations (near $200k). It's currently listed for $400k but I would not offer more than $300k. I spoke to a lender I've worked with before and he mentioned lenders might require 1) a minimum loan amount for a property like this and 2) a JV with someone with experience being required.

Does anyone have any experience with something like this? I know it could be a great deal if I figure out how to purchase it.

Thank you!

@allan 

@Allan Smith and this has been successful for you? Do you use it for AirBNB type properties or traditional buy and hold?

Has anyone ever gone the new construction route for investment properties? How does it work getting a construction loan? And do you convert it to a conventional 30-year mortgage after it's complete?

@Andrew Postell That's why I wanted to ask the BP community. I wasn't sure if it was that simple or not, but if it is then yes that's a terrible deal for me.

@Andrew Postell my mortgage payment is $1192 and that includes everything.

Hi everyone,

I was recently contacted by someone who wants to buy one of my duplexes using seller financing. I have never used this before and am curious to see if you think this is a good deal or not. 

Here are the details:

-Bought the property in Jan. 2023 for $180k with 25% down

-Rents for $2000 total

-Good long-term tenants

-Cash flows approx. $300 per month since I manage it myself

His Offer:

Principal price: $130k

Down payment: $39k

Interest rate: 5%

Total left owed: $91k

Loan term: 180 months

Principal monthly payment: $505.56

Interest monthly payment: $379.17

Total monthly payment: $884.72

Total paid to seller: $198,250

Is this a good deal for me? Again, I have no experience with seller financing!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $197,000
Cash invested: $55,000

This second property came to me off-market through an agent friend. We did out-bid one other investor, and it is going to be a great cash-flowing 4-unit property.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $180,000
Cash invested: $45,000

My first investment property! I didn't want to get stuck in analysis paralysis so I pulled the trigger on a solid base-hit duplex.