All Forum Posts by: Page Huyette

Bumping this post with a related question:  any difference if it's a vacant parcel?  Would like to have seller carry for 12 months, then refi with a local bank or sell.  Have been told I only need 6 months for occupied property (not vacant parcel)  and property should have 20% equity in several months if the deal flies.  Anyone done a refi for a vacant piece of property in this manner, or have info to share?

Here are some links to BP posts that might be helpful:

http://www.biggerpockets.com/forums/52/topics/71168-bookkeeping-for-rental-property?page=2

http://www.biggerpockets.com/renewsblog/2005/10/07/things-to-consider-when-interviewing-property-management-companies/

I've been looking at this software as an option, but haven't used it yet:

http://www.buildium.com/

Here's a PDF download I came across some time ago that may also be helpful:

http://www.managemyproperty.com/articles/hiring-a-property-management-company-25

good luck!

I agree that paint is the best, as kids and pets can tear or scratch the wallpaper.  But, if you are committed to that option,:

Graham & Brown wallpaper

I believe Lowe's also carries a similar less expensive option.

Pulled this link from the internet regarding a description of contract for deed, which looks like what you are describing.  Seller holds the deed until you pay off the loan:  http://www.forrestergrouprealestate.com/Blog/Lease-Option-vs-Contracts-for-Deed

@J Scott do you have a recommendation on how to format a proposal that includes the above option/contract? We have done prelim research on a raw parcel and want to approach the owners about splitting and purchasing a portion. I want to clearly spell out the benefits for them in an out-of-the-blue proposal that will encourage them to look closely at our offer. Any suggestions?

How is the A&D different from a raw land purchase? It sounds as though you are referring to a loan that includes the land purchase cost along with development costs. This is what we are looking at, but the programs I am finding that roll into a permanent loan seem to have short (6 months) time frames and that is very tight to get through subdivision approval.

This is a follow up to my post How to finance a rental guest unit but since the parameters have changed, I'm starting a fresh post.

We are looking at purchasing raw land adjacent to our primary residence, building a house on it and renting out our current residence. I have been speaking with lenders about wrapping the land purchase, county and infrastructure fees and house construction into one loan.

One lender has a product that would require the contractor to purchase the land, build the house and then sell it to us.

Another option is to purchase the land for the land and infrastructure costs, then pay those fees at closing. In other words, if the land value was $100k less $30k in fees and costs, the seller would net $70k at closing. We would then get a construction loan for the home to be built.

Anyone have experience in this type of transaction or care to weigh in with your opinion?

What questions do you have? I teach a course in web design, marketing/SEO and do a lot of affiliate marketing. Not necessarily looking for work in that area, but would be happy to answer questions.

Why don't you write up an offer with owner carry at their price for 1 year, then you can do a straight refinance into a conventional in six months, using the other units rent to help qualify.

Some agents may frown upon this approach, either because they don't understand it, or are afraid they'll lose their commission, but if the house isn't selling, its time to educate them on getting creative.

If you could put less down with the owner, it might allow you to put the rest of your cash into improvements. This could bring in a higher appraisal at refi time, allow you to possibly raise rent in the other unit. You'd have to run the numbers, and I'd suggest talking to some local banks for this type of refi, but it is doable if the property has potential. The hardest part would be convincing the owner and agent, part of which is offering attractive terms for everyone.

If the numbers don't pencil, keep it in mind for the next deal, as there's always another one around the corner.

I hear you. It will come down to the cost of the land and construction costs. If we can get the land for closer to 40K and perhaps build something smaller to start, adding on later, it could work.

I'm probably very conservative with that rent, but starting out from a worst case standpoint. Probably closer to 1300-1500, but it does depend on size.