All Forum Posts by: Rodrigo Barrera

@Matt M. i understand your point too but if we would have put down 20% ($160,000) they would would have cashflowed another $850/month.

I guess the point being that they still cashflow even when only putting $15000 down and 20-30 years down the road i have an extra $8-9k every month assuming rents stayed the same.

$800k that others will payoff for me.

@Aaron Tavares Michigan and no not specific to just college towns, keep in mind this is a relationship we have been fostering for quite some time with this investor and have done previous deals with them

@Bonnie Low in this particular one since we have done deals in the past the seller offered but we always ask even if seller doesnt bring it up

@Darius Ogloza i have done deals with this seller in the past at 6% interest, this one was at 5.5% due to size of deal, varying balloon payment terms, 30 year amortization. thats it, he mostly buys them rehabs them and also makes money on the back end financing, i have refinanced and cashed this particular seller on several properties within the first 1-2 years way before balloon payment is due.

This post is to highlight the benefits of seller financing and building relationships with other landlords in your area.

Yesterday we closed on an $800k deal using seller financing with only $15,000 down. Details on the properties below.

1. Single family house near a college, previous owner bought it after it was in a fire last year, all new systems, basically new historic 100 year old house.

Purchase price: $195,000, $5000 down

Rented for $2000/month, monthly cashflow after expenses (including, taxes, vacancy, repairs etc) approx $350/month

2. Single family house across street from private college built in 2018.

Purchase price: $220,000, $5000 down

Rented for $2300/month, monthly cashflow after expenses (including, taxes, vacancy, repairs etc) approx $450/month

3. Duplex across street from private college built in early 2000s

Purchase price $380,000, $5000 down 

Rented for $4000/month, monthly cashflow after expenses (including, taxes, vacancy, repairs etc) approx $650/month

In Summary, $8300 in gross rents added and $1450 in monthly cashflow, hows that for cash on cash return!

We just want to show people that these deals are out there! Let us know what questions you have!

Cheers,

Rod

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Kalamazoo.

Purchase price: $380,000
Cash invested: $5,000

Newer construction Duplex across street from college rents total approx $4000/month

What made you interested in investing in this type of deal?

the gross rents, newer construction and seller financing

How did you finance this deal?

seller financing

What was the outcome?

rented for $4000/month total

Lessons learned? Challenges?

taxes are high but must plan for this

Investment Info:

Single-family residence buy & hold investment in Kalamazoo.

Purchase price: $220,000
Cash invested: $5,000

new construction house across street from college built in 2018

What made you interested in investing in this type of deal?

new contruction from 2018, across the street from college, minimal vacancy

How did you finance this deal?

sellet finance

What was the outcome?

rented for $2300/month

Investment Info:

Single-family residence buy & hold investment in Kalamazoo.

Purchase price: $195,000
Cash invested: $5,000

Historical house that underwent a complete gut job, new plumbing, electric, hvac, drywall, roof, insulation, after a fire that occurred at the property in 2019. acquisition also included a buildable lot in the back.

What made you interested in investing in this type of deal?

Everything in the house was pretty much NEW all major systems etc, purchase included a buildable lot in the back.

How did you finance this deal?

seller financing

What was the outcome?

leased it for $2000/month

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $5,000

single family 2 bedroom house near a college close to downtown.

What made you interested in investing in this type of deal?

available seller financing, proximity to college

What was the outcome?

raised rents upon renewing lease with current tenant

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $127,500
Cash invested: $5,000

single family house near college rents for $1550/month

What made you interested in investing in this type of deal?

seller financing, 1 block from college, cashflooooow, tenants were already in place for 2 year lease

How did you find this deal and how did you negotiate it?

previous seller finance

How did you finance this deal?

seller financing only $5k down

What was the outcome?

tenants have been great