All Forum Posts by: Mike Dixon

@Tom S. It looks like conventional financing won't work for now because of the age of my business. I'm also waiting to hear back on how I could owner finance this property. So for now it looks like I'll just buy a different property for $30k cash or I have another property I can pull some equity out of but I'll have to wait a couple months. I wasn't wanting to tie up that much money at once but it looks like my best option now is to just buy a cheaper property cash then pull the equity out.

@Shannon Sadik I'm definitely putting down as little as possible. My uncle told me he would owner finance me but because of his age he wouldn't want a long term. I assume he wouldn't want to do more than 10 years but that would be pushing it.

He is trying to give me a deal but the property is in the middle of properties selling for $30k and $50k+ on Cummings Street. I will run some comps and get in touch with a RE agent, thanks!

@Crystal H. Thanks. He has another duplex in Rochester not %100 sure where exactly but he told me he would sell it for $30k (the numbers would be about the same, rent/taxes/insurance wise). I figure if a loan that small couldn't be made i would pay him $15k as a downpayment and just pay the whole thing off within 6 months. The only thing i'd be afraid of then is trying to pull equity out of a property with a low value like that. Have you ever pulled the equity out of a $30k property?

@Larry Turowski I looked on the city's website and I the house was purchased for $32,010 in august 2006. I would assume the property hasn't appreciated up to $45,000 in a little over 8 years. Do you suggest that I pay to have a market value assessment done first? If so do you know any high quality local companies?

@Martin Grizzanti I called the cit and they told me the tax assessed value is supposed to be 100% of the market value, i'm not sure if I believe this. This specific property is located in Homestead Hights Rochester,NY in the 14609 zip code. When I look on Zillow it shows properties in this small area ranging on sale from $28k-$116k. The cheaper properties are only 2bed 1bath and the most expensive are 6bed 2bath. The property i'm looking at is 4bed 2bath. What do you think?

*not bank my business

@Chris Seveney my uncle has $18,000 left on the mortgage. I can have him do owner financing but the length would be short because of his age and what does subject to deal mean? Sorry I'm new to this.

I don't have a full time job, My only sorce of income now is my bank. But I do have another property worth about $45,000 according to Zillow. (I might just try and pull the equity from this property) From what I've found out from speaking with a few different banks I'll have to do the financing in my personal name to make things easiest and have the better interest rates.

@Chris Seveney I've talked to a couple banks but run into problems with the age of my business- they all say they want a work history/business age of 2 years minimum. The tenants pay all utilities. I think this is a good deal even after factoring all those things in, what's the turning point of you thinking this would go into a bad deal? Adding in 10% for vacancies, 10% for repairs then having less than $200/month cash flow?

@Curt Davis Why don't you think I could get an equity loan? Is it because the age and type of category this property falls into? If that's the case I will put as little money down as possible because I'm also trying to buy another property similar to this one in the same area.

My uncle is getting up in age and is wanting to sell some of his properties that range from SFH's to duplexes and a few triplexes in Rochester, NY. I'm trying to figure out the best way I can finance this first property with the least amount of money down. Here's some details on the property.

Zillow estimate value $64,500 (not sure how accurate this is?). Assessed tax value is $45,000 this is what I can buy the property for. (is it known that the assessed tax values are lower than the actual market value in Rochester?)

Duplex built in 1925 in 14609 zip code (Rochester, NY)

City taxes $1,900/year, County taxes $1,300/year

Water $800/year (Uncle says he forwards the bill to the tenants but since it's a duplex the bill is in his name) 

Insurance $300/year

Rent income $1,200/month ($600 from each side, is about to go up $25, there are currently tenants living on the property that have been there for 2.5 years)

All of those expenses come out to about $358/month. For example adding another $350/month mortgage payment (I know it's high) would bring my total expenses to about $708/month. So this would leave me about $492/month in cashflow for now. My uncle told me he would manage the property for free as long as long as he is able to (he's 78). Even if I had to pay for property management which I know I will one day and count in vacancies and repairs I think this is a good property.

I have $15,000 I could use as a down payment and get a $30,000 loan (If a bank will work with me because i'm 25 and my business is only 11 months old but I have great credit) but I want to keep as much of my money free as possible. I have an extra $2,000/month I could throw into the mortgage if I get one but don't know if it will be hard to pull 75%-80% equity back out to buy the next property. Or I could give my uncle $15,000 and we could work some type of owner financing out but since he's old he doesn't want to do a long term, but i don't want to lock all $15,000 up right now. Another option that was brought up to me is that I could have someone cosign a unsecured loan (my dad has great credit and he already told me he would cosign) then buy the property. Then do a cosmetic rehab (to raise the value for the bank) and get an equity loan and with the equity loan pay off my unsecured loan.  These are the main options i'm looking at here, please let me know If I'm missing anything and your thoughts on how I should go about this.

Thanks for looking!

@matthew Swisshlm I will be going to the REI meet ups here in Omaha and trying to network as much as possible so I can to find someone I can work part-time for, someone who is experienced or trying to build their business. I'm hoping I can help find them some great deals and in return gain knowledge and some type of finders fee. I also have a few buy and hold deals I can take advantage of right now- I just want someone with experience to analyze it to give me more confidence to purchase the property.

@Yoshi Nakayama Is there any way I could help you with what you're doing? I really want to learn from someone thats "doing it". I've read several books but I really need to see firsthand how it's done

Hey Everybody I'm new to Omaha but I want to meet like minded people. I'm really interested in wholesaling right now to build capital for my buy & Hold properties I will be purchasing soon.