All Forum Posts by: Od Ntuk

 @Jason N. Could you explain how you use local title companies to get leads?

Hello,

I would like advice on setting up a win-win no-money-down deal. I live in Brooklyn, NY and one of my neighbors has retired and moved back to Ghana West Africa. He put up his house to sell but will probably have trouble selling it on the open market for a quick sale. It is a two-family property and is listed for $1.1 million. It is in good condition, just outdated. I know he does not want to carry the property in his retirement and does not want to worry about renting it out, etc until the market picks back up. He has had bad situations with previous tenants and does not want the headache. This gives me a good opportunity to work out a no-money-down deal. He would be interested in getting $800k for the property. I would need to sort out how much he owes on the property, what type of mortgage he has,  verify what his monthly mortgage payment is, if the property has any liens on it and a clear title, etc. I plan to work out an agreement with a real estate attorney I just need some suggestions on how to structure a good deal.

If I were to work out some sort of syndication type agreement, I suspect the duplex unit that has 4-bedrooms and 2.5 baths would rent for at least $3500 per month on a yearly lease. The 1-bedroom unit on the ground floor has 1-bathroom and access to the backyard. I would lean towards furnishing it and renting it out month-to-month. I suspect I would get around $3000 per month for it. He has mentioned that his monthly mortgage is $2500, but the next step would be verifying that. He has mentioned that as long as he can cover the mortgage and get a margin of $500 to $1000 per month that he would be happy. My only concern is that I would be trusting him to pay the mortgage and keep everything current until we work out a transition period with maybe a rent-to-own type situation with a quit-claim deed.

What would you do to set up a win-win type situation? How would you structure a deal? This would be my first time doing a creative real estate deal like this with ideally no money down. If I set up enough runway, I could save money for a down payment, particularly with the margin from renting it out.

Thanks!

@Branden Rivero How are the airbnb laws where you invested? 

Did anyone take the plunge and invest in Miami for an Airbnb? If so, how are things going for you? I am a super host based out of Brooklyn. Since things have basically been shut down in Brooklyn I invested in Philadelphia and now I'm looking for another place to invest. Thanks!

I'm piggybacking on this message. I'm based in Brooklyn so I'm in the same boat. I bought my first investment property in Philly and set it up as a short-term rental. I am eyeing up Pittsburgh as my next investment. I recently setup a self-directed IRA (SDIRA) and invested $95k in it. I am interested in BRRR deals and will be holding each property for at least a year before flipping them. Thanks!

@Nick Gerli would it be possible to list out all the affordable markets that are part of the chart? I can't make out all the cities. It would greatly help me with my research in finding properties that I can buy cash with my SDIRA. Thanks!

Ok cool. Thanks for all the helpful information. 

@Courtney Benson How are you setting up the units? Is the first floor unit a duplex with the basement? You are giving me ideas. I am setting up a self-directed IRA so I can invest $100k in my old retirement accounts from previous employers.

@Courtney Benson How large was this property. Most of the single families I have looked at are less than 1000 square feet which is on the smaller size even for a single family home. I’d imagine a successful conversion would probably done on a larger property. I’m just curious what the demand would be for a small apartment vs a moderate size townhome.

@Courtney Benson Can you discuss the difference in rent income vs keeping it a single family. This is something I’m curious about because it is not ideal with every situation. With a multi it is better to have a management company where with a single it is easier to self manage. With a single tenants can be asked to pay all the utilities. With a multi you have to pay for common space energy usage, and usually hear and water.