All Forum Posts by: Trey R.

Thank you all very much for the information.  I am going to approach the seller and see if we can work something out.

I've done all conventional loans up until this point and am seeking a little input/guidance when it comes to more creative ways to finance a property.

I am attempting to purchase three homes from one seller.  They are selling for approximately $70k/each and the seller owes $50k on all three properties combined.  We have spoken and they said they wouldn't be opposed to seller financing.

Being that the current owner still owes money I know that the due on sale clause comes into play.  That made me think about possibly doing partial seller financing.  My main goal is to try and refinance them after 6 months.  We haven't talked rates or anything but a down payment of $15k was mentioned.

The seller is definitely motivated since they are moving so I'm trying to make something happen before another investor gets in the way.

Assuming each property is purchased at $70k that makes the total price $210,000. 20% of $210k is $42,000 which means I would need $27,000 from the seller to reach a 20% down payment if going through the bank. I would prefer to avoid banks completely but this was just an idea. I have also pondered the idea of using HML to get into the deal and then refinancing my way back out.

Anyone have any thoughts?

I've been using Cozy.co with my most recent tenant and like it so far.

Just curious what the deal is with the property?  You posted it over a year ago for $75k but never sold it?

Nice job!  Thanks for the write up.

This property is about an hour outside Raleigh.  I actually work for the City of Raleigh so I probably know it a little too well.  The current market there is way too crazy right now in my opinion so I am staying away and trying the smaller cities.

I have done a pretty good amount of research thus far regarding crime and what not but still a lot to learn.  Thanks for your input.

@Michael Hastings 

Thanks for the reply.  Yea I am curious what the current owner's plans were.  I looked up tax records and they have 5+ properties they have purchased for around that same price.  I haven't discovered yet if they are in the flipping game or not.  The house is definitely vacant and looks ready to go from the pictures.  I have not seen it in person yet.

2.   You could be correct by needing to change my vacancy rate.  I just did 5% and I'm sure it's a bit worse in this area.  Both of my other properties are in "A" areas so I've had a good experience with vacancies up to this point.

I was definitely going to offer less money.  Like everyone says, all they can say is No right?

Thanks again.

p.s. I know there are numerous posts on this already but figured I would open a new discussion as I had specific property numbers to discuss.

I currently have two rental properties and they were both former primary residences.  My short term goal is to have 5 rental properties (only 3 away) by the end of 2018.  

Anytime I look for properties on the MLS and they have been there more than a few months I tell myself "Well, if it's still there then obviously something is wrong with it since no other investors have picked it up". Obviously I could remedy this problem with an inspection or walk through with a GC but at this point I usually talk myself out of looking further.

I take it I'm not the only one with this problem right?  What did you do to get past this stage?

This is a property I was looking at earlier today.  Based on my limited experience I know I should go for it.  It's been on the market for 220+ days.  It was purchased in 2015 for $17k and completely redone with almost everything being brand new (including roof, hvac, water heater).  I would say the area would probably be given a C rating.

I have smart thermostats in both of my rentals and haven't had any issues.  You just reset it for a new tenant and allow them to set it up with their own information.  Of course they have the option of not setting it up and just using it like a regular thermostat as well.  One house has the Ecobee and the other has Sensi.

I was definitely going to go with a month to month lease if it came down to renting to somebody in that category.  Right now I'm still searching for tenants but I was trying to plan ahead.  I was really just trying to make sure that my rental wouldn't somehow fall into something with the bankruptcy.  

I believe I read somewhere that speaking with the attorney for the bankruptcy and getting their current stipulations and maybe even an approval for a new lease would be a good idea.  Hopefully it turns out that I don't have to worry about it but just trying to plan ahead. 

Thanks!