All Forum Posts by: Account Closed

 I appreciate this feedback. It is extremely difficult to find deals that cash flow right now with these interest rates. 

 My long term goal is new purchase a new primary home every year or two and retain the properties to build a small portfolio of single family homes. My total payment on this new property will be $2250.00 and the current market rate is around $2000-2200. Just hoping to make numbers work within a couple years so I can purchase a 3rd home to keep investing in property. 

The property was originally listed as 430K  and sat on the market for 35 days with a couple price reductions down to 375K. We placed an offer of 360K and it was accepted. The home is in a decent area which is East Mesa if your familiar with the Phoenix market. I know prices are dropping and I'm second guessing whether I built in enough equity. I'm putting 5% down so I should have a balance of 342K. I'm taking a rate at 5.75% with no buy down and my concern is that I will have lost too much equity to refinance the property when rates eventually drop. 

I found two recently closed identical comps and they sold for 440K 04/01/2022 and the other for 420K on 06/01/2022. This purchase would be my first step towards investing in property since I will be retaining and renting out my first home so I'm a little anxious about it all. I feel that I'm getting a decent discount on the property to pad my equity, but what are your thoughts?

Thanks in advance!

 It would be my primary until I could purchase again within a year. My plan is to try and finance a new property every year as a primary so I only have to put down 5% at a time. I would then turn my current home into a rental which should cash flow around $400-450 before considering vacancy loss and cap and repairs. It's a new build so I don't anticipate much repair or cap ex hoping to truly cashflow $250-300 a year 

 The upside for her is that I can offer her a purchase price that is higher than market value, but I understand what your saying and am willing to pay interest on my loan to her. I'm just exploring this option because otherwise I can purchase the home from her with a new loan and cut out an agent to save us both money. I would just have to eat a high interest rate by doing so. 

 My motivation to buy the home is to retain her sub 3% interest rate. The best rate I can currently get right now with around $7000.00 worth of point buydown is 5.1%. This is with Ally, I've found that they are by far the most competitive for rates. 

The down side in making this deal is I lose my capitol to potentially purchase other properties as the market cools down. 
 

What part of the valley? 

The one property is worth $400,000 she owes $168,000. I want to work out a deal where I am able to able to retain her interest rate of 2.75% while having it make sense for her as well. I have the ability to pay her a lump sum of $100,000 up front and take over her payments. I would then propose giving her something like $1000 a month to pay her off on the remaining $132,000 equity which would take exactly 11 years. I would need to propose this to her, but first want to figure out how to to protect us both? I understand that you would typically create some type of promissory note? At what point would I take title, once both the loan and our agreement has been paid in full?