All Forum Posts by: Sam Runge

Hi BP!  I'm looking for some insight on pros and cons of seller financing and what that formal process looks like.

A family friend built a duplex ~30 years ago and owns it outright and wants to sell.  I believe he might be a decent candidate for seller financing but I have not discussed that with him.  I'm looking to purchase this property as a house hacker to make some updates and expand my portfolio from (1) duplex to then (2) totaling four units and two properties.

He claims he's never had issues keeping tenants and it's a decent neighborhood.  He plans to sell for $265k and I've expressed interest.  My situation would be to purchase at 15% down with traditional financing.  My income is plenty sufficient for this purchase but don't have all that cash on hand so about half that down payment would be a legal gift from my dad (paid back at a small interest).

I'm curious what people see are the pros and cons of my situation, if a seller financing offer makes sense, and what the formal process would look like to make such an offer?

Respectfully,

Sam

@Jaysen Medhurst thanks for the feedback. I did have a lawyer friend of mine review my lease agreement and I just changed the agreement to be between them and my LLC and had all sign and date. I also instructed them to change the name as you mentioned. I appreciate the help!

Hi BP!

I am a new investor with my house hack duplex. I am currently in the process of transferring the title to my LLC of which I am he sole owner/operator. I have longterm tenants in the other unit. The tenants have been paying rent through Cozy.com going into my business account. I'm looking for guidance on what people recommend when dealing with notifying the tenants of this change. I was planning to formally send them a notification explaining it. Is this necessary? Do I need to create a new lease agreement (same agreement just the LLC would be the owner)? Do I not need to do anything?

Thanks in advance!

Hi BP!

I am a new investor with my house hack duplex. I am currently in the process of transferring the title to my LLC of which I am he sole owner/operator. I have longterm tenants in the other unit. The tenants have been paying rent through Cozy.com going into my business account. I'm looking for guidance on what people recommend when dealing with notifying the tenants of this change. I was planning to formally send them a notification explaining it. Is this necessary? Do I need to create a new lease agreement (same agreement just the LLC would be the owner)? Do I not need to do anything?

Thanks in advance!

Thank you all for the input!  I really appreciate everyone's feedback.

Hello BP,

I am a new investor and just recently purchased my first property (2 unit/duplex) in which I plan to house hack. I am currently finishing up some renovations prior to me moving in on the 2nd floor.  I can smell marijuana coming up from below and unsure how to handle, especially during these uncertain times from the pandemic.  I have a no smoking on premises section in the lease.  So far they are good tenants.  What do people recommend?  Send a letter restating the policy?  Threaten eviction?  Letter stating it can be smelt and I am aware they are in violation?

I do not have a section in my lease specifically for smoking fees/damages/etc. 

I appreciate any and all advice!!  Thanks! 

Thank you very much @Jonna Weber for the kind and supportive words!

Thank you @Nate Burgher for the response! Quite frankly, I wasn't even expecting to get a response so I can feel the effect already! 

Thanks again!

Hello BP community!

I am 100% new to BP and real estate in general.  I graduated college from Mizzou in December of 2017 and have recently gained lots of interest in the real estate market and the potential for future financial independence.  I am looking to learn how I can utilize this community of like minded people to begin developing a network of connections.  I am also excited to attend some forums/discussions to get some face time with others to simply do one thing: expand my knowledge base.

Thanks!