All Forum Posts by: Sam Morgan

Jon,

I think your hesitation to begin the eviction process is warranted and may not produce a quicker/cheaper result.

Sometimes it’s best to pave the way for a bad situation to get better. This might even mean paying for a mover yourself and truly have the tenant out of there in a day. Perhaps the other tenant’s persistence in contacting you will mean a swift move out on there part. Better to have the property vacated quickly so that you can begin an efficient turnover. 

Best of luck! 

@Derek Robinson

Looks like I never hit the post button to reply yesterday. 

Which High Five coffee? Rankin or Broadway?
 

Hi Derek, is the meet up still happening this Wednesday?

@Derek Robinson

Hi @Bryan Presnell 

Is owner financing available with that off-market property? That would solve a lot of issues. If the seller owns it outright, this might be an option. You could do some reading on the pros and cons, this way you can pitch it to the seller and explain why it might be in their benefit, i.e., consistent monthly income for them, dampened escape of capital gains tax, 3-6% savings in commission costs by potentially keeping RE brokers out of the deal, etc.

Sounds like it could be tricky. I guess I would go ahead and find out for sure if the mobile home will be an issue with traditional lender.

Hope it works out for you! I'd like to know what happens if you want to keep me in the loop.

I'd like to be tagged too @Derek Robinson

Won't be able to make this one, but would like to if you do it again.

@Ryan Howell that sounds lie a really great idea. 

Would I be paying three separate mortgage payments each month? The seller might not be fond of having it spread out like that. This might be a great way to negotiate. Thanks for the idea!

Hi @Ryan Howell and as always thanks for your input @Will Fraser

Can you elaborate on this a bit? Ideally, I'd like to rehab the house and then cash out refinance to recapture some of my capital, but I thought I couldn't do that with Seller Financing. What you are proposing sounds intriguing, but I'm not sure I get it. Essentially, have 3 separate loans thru the seller? Then after rehabbing later this year (or 1 year later for seasoning), go and refinance just the house to pay off that separate deed and continue with the owners terms on the lots?

@Will Fraser and @Andrew R. thanks for your input. With option 1, the option to purchase the lots will expire quickly after closing, within a month. Not much time for due diligence. Apparently, there are other interested buyers. 

I think I could turn around and sell the lots for a profit if need be. I'm leaning towards the seller financed package - Option 2- since I could almost certainly have the monthly debt service covered by renting out the SFR upstairs (it has 2 separate living areas, but may need to be converted into duplex which could be very costly, and maybe impossible), and I think I could find private lending to help fund building projects on the lots. The seller financing allows me to purchase everything now at tax value, with ability to cover the debt service, making this a longer term play with the returns gaining momentum down the road in yeas 3, 4 and 5.

Hi All! Looking for some insight in a unique situation I've been presented with. Which do you like:

Option 1: Purchase a $210,000 (tax value) home needing a $60k renovation in a great neighborhood w/ conventional 30-year mortgage + the option to purchase the 2 adjacent lots. 10% ROI after cash out refinance to hold as rental.

-or-

Option 2: Purchase the house and the lots for $370,000 (tax value) with Seller Financing and $40k down at 2% interest (blended P&I payments) for 10 years amortized over 30 years. Lots might support a duplex and triplex or SFR and duplex. I would still like to renovate the house and cash out refinance and hold as rental for similar returns, but I'm still learning about this...

@Will Fraser if Asheville didn't have such tight restrictions on STR and ARBNB within the city limits, that would be the obvious play. The zoning supports small multi family, but the trick will still be about finding ways to optimize the rental income while not violating any rules if it remains SFR. I'll have to get creative for sure.