All Forum Posts by: Nick Contristan

Jason, thanks for the input. I think we have the financing figured out at the moment. My fear is what the house will appraise for after we clean it up and find renters. From a cash flow and cash on cash return perspective it looks like a very good deal. I just have no idea what it will appraise for as two homes on one lot is unique. I do want to pull cash out so the appraised value is important to me. We're going to call some appraisers on Monday to see if we can get some sort of estimate without going through the full process. Our agent is also pulling comps from the MLS but since there is no field to identify two properties on one lot, it will take some hunting to find what we're looking for.

ARV is a good question. The home sold in 2009 for $215,000. A permitted second home (2 bed, 1bath) was added in 2015. I'm under contract for. $175,000. I'm budgeting for new roof, flooring, interior paint and cleaning up the yard. This should be less than $20,000. Our plan was to include the rehab costs in a traditional 30yr fixed loan, then buy and hold the property renting to year round tenants. At some point the plan is to pull cash out for another investment. I'm trying to put as little cash down as possible. Yes, Gabe is my brother. Thanks for the input!

I have a unique opportunity in Currituck county NC where I am currently under contract on two separate homes on the same 1 acre lot.  As I'm unable to get a traditional 30 fixed loan on this property I'm looking at other lending options.  I would like to roll the rehab costs ($20k to $30K) into the loan if possible.   I plan to hold these homes long term and rent them.  I'm looking for a bank or local lender that I can work with.  Any suggestions are appreciated!  Thanks!  

I'm about to go under contract on a property that has a lot of junk in the yard - car, 20ft boat, 2 refrigerators...  you get the picture.   Any suggestions as to ways to deal with this situation?  The contract says the seller will remove all personal property, but what recourse do I have, other than backing out or delaying closing until the property is removed?  I fear getting rid of these large items could be costly.  Thanks for your input!  

My agent has come across a home that the owner wants to sell.  It's currently rented to a couple that really like the home and would like to continue renting.  The agent says the owner wants to sell the home for $50K (its a run down property), but I plan to start negotiating at a much lower price. My plan is to pay cash and then finance the sale of the home to the current tenants.  They are paying $650 a month in rent and I want to structure my loan so that the loan payment would be equivalent to their current rent payment. I'm trying to create a win win win situation where the current owner of the home gets paid quickly, the tenants get a chance to buy the home, and I generate monthly cash flow.  This is my first deal so I need some advice on how to best structure the deal and potential pitfalls with my plan.  Here are some questions I have...

1. Based on discussions with my agent, I'm assuming that the tenants could not afford a down payment.  Is it wise to structure a deal with no money down?

2. Do I need to require the buyers to have insurance on the home?  Should insurance and property tax go to an escrow account? Are there regulations on how these escrow funds can be held by an individual party?

3. Assuming I can get the home for $40K, what would be fair terms (rate, amortization, maturity term?) for the loan assuming a $650/month total payment (including taxes/insurance).

4. How strict should I be when reviewing the buyers credit and financial status?  I don't want a situation where they can't make payments and I have to foreclose, as I don't want to take the home back.  

Thanks for your input!