All Forum Posts by: Noelle Yarn

Hi everyone! Thank you for the very warm welcome! This is a lot of information to sort through. But, to be sure, I am seriously reflecting on all your suggestions and recommendations. I do realize that somehow I have got to demonstrate to those whom I look to for funding my deals that I have got some "skin in the game" as should be the case. How I wish that I had enough saved for a down payment. Unfortunately, I am caring for an ailing mother and sister stricken with ALS ergo my sense of urgency. With that being said, I was wondering if a seller would be willing to "finance" the down payment on a multifamily rental property since most traditional lenders will only finance between 70 to 80%. Do you guys think this is a worthwhile proposal to a seller? And if so, what interest rate and for what duration should I propose he/she finance the down payment is reasonable to make it worthwhile for him/her so that the numbers work for me as well work cash-flow-wise? Thanks again. 

Update: The real estate agent for this house is also the property manager. I asked to review his contract in case I wanted to hire him to be my property manager, and he called me today and said that he wasn't interested. He refused to take on anymore properties in Park Place because it has just been too much of a hassle. He's been seeing people place a security deposit, pay for two months rent, and then just stop paying. Basically I'm not going to pull the trigger on this place lol.

@Brian Lybert

@Paul Washington

With little cash upfront an FHA mortgage is the best way to get started, by living in one of the units and renting out the others. You can purchase a house that is dated, but livable and make improvements with time or with the rental income. FHA will allow you to use rental income towards your DTI's where as many products don't allow you to with no rental or mortgage history. I am glad to answer any financing questions. One of the first steps is getting pre-qualified so you know what purchase price you can look up to.

I regularly search a lot of the different auction sites, and I feel that many of them at least in this area tend to be overpriced. Even the one that I was just the highest bidder on was a little more than what I wanted to pay by about $5000 but if it turns out to be a minimal cost rehab cost then it will be a great deal. If it is a moderate rehab, it will be a on par with the rental property that I got off of the MLS. If it turns into a complete gut job, then it will turn into an expensive lesson.

@Wayne Brooks, the property appears to be vacant from the several drive byes that I have done but when I called customer service they said that since it was originally listed as occupied that I will not be able gain access to the property until I close. Although, I'm going to go see if I can do a better evaluation of the property beforehand to provide my contractor a better guesstimate of the project scope.

My dad likes to use hubzu for his rehabs. I haven't had much experience with it though, but it's worked nicely for him.