All Forum Posts by: Nick Maynard

I did consider trying this but I believe you can only have one FHA loan in your name at a time. And the lenders I have talked to made it sound like getting approved for another FHA after just using one for a multi unit purchase would be pretty hard (assuming I refied out of my first FHA).

@Cody Hunter

@James Alderman@James Alderman

@James Alderman

The seller would like to sell in the next few months but doesn't seem to have any sort of deadline. Doesn't sound like he's under any sort of pressure or anything.

Seller-financing is definitely the route I was hoping to go but I thought he would need most of the mortgage to be paid off. I wasn't sure that you could do it when they still owe more than I am willing to put down for the down payment. So in this situation, would I essentially have a $200k loan with my lender and then a $350k loan (assuming I buy for $550k) with the seller? Is that how that would work?

All four units are currently rented. The seller pays for one of the units' utilities as the tenant is an older gentleman and it sounds like they are friends. He also pays for heat for the entire building, so given the already-low rents, it's not cash flowing like it should be right now.

Appreciate your response!

I'm trying to decide how to approach an off-market opportunity I've just come across. I recently purchased a three unit building in Saco, Maine which I'm currently house-hacking, and when talking to the landlord of the four unit property next door he mentioned he's interested in selling. He showed me the house and it's in decent shape - a few units could use some cosmetic updating but overall it could be a turn key purchase.

I already have an FHA loan under my name and my lender is telling me the best options I currently have are:

1) A non-occupant co-borrower loan - 20 year amortization, 20% down, current rate around 5.375%

2) A commercial investor loan - 30 year amortization, 25% down, current rate around 5.375%

I haven't discussed a price with the owner yet but I'm thinking he will ask between $500-$600k, hopefully on the lower end. The rents are currently a bit under market so they would probably need to be raised for this to make sense.

I've analyzed the deal a few different ways and with rents raised to market I think it would cash flow around $1,000 a month.

This seems like a great off-market opportunity for me to snag another rental property without buyer competition, especially being right next to my current property, but with rates rising so quickly and a large down payment needed, I can't tell if this is something I should just let pass me by.

I could probably get $100k together but I would need to bring in a friend or family member to help out. I know the seller still owes $200k+ on the mortgage so I don't believe seller financing is an option.

What do people think about this situation? Is the close proximity to my first rental and the off-market deal worth taking a risk on stretching myself thin for a few months? Does this sound like a decent wholesale opportunity? Do these rates and terms sound about right?

Really just trying to spark some conversation and see how people would approach a situation like this right now. Any thoughts or insight is appreciated!