All Forum Posts by: Sebastian Sovero

Hey guys, thanks a lot for your responses. I do have a couple follow up questions if you don't mind. 

My situation is the following, I am not familiar with the area and the reason why I came across this potential deal is because I've known the owner for some time and she mentioned she wanted to sell it. On Zillow, the home is appraised for about $350K, however based on my conversations with the owner, there are a few pain points which I'm sure Zillow doesn't consider in its "Zestimate". 1) The home has no central A/C. The owner never bothered since they were only there during the times of the year when they felt it wasn't needed. 2) There is no washer and dryer, 3) the home is a 2 bed 2 bath plus a basement, which the basement needs some paint on the walls and new carpet, but not much. The home itself is about 1,000 sqft w/o the basement. 4) the owner hasn't been to the house in about a year, so I'm afraid I may need to do some cleaning and repairs if any. The house has well water. Home would be sold fully furnished.

With all that being said, the owner wants $200K for it. @Mitch Davidson regarding your comment on distance from Chimney Rock its about 18 - 20 mins west of it driving, about 8 miles. All that being said, I don't want to dump a whole bunch of money adding A/C, W&D and maybe even a hot tub as you mentioned for a STR that's going to cashflow very little (after property management since I'm in Florida) and stay empty some time of the year.

Thoughts? Also @Mitch Davidson I see you're a lender? Thoughts on doing this as an investment property loan?

Hi, 

I have the opportunity to purchase a cabin in Lake Lure, NC. Nothing fancy, just a small cabin with may need some repairs. The cabin belongs to an acquaintance who doesn't want it anymore and is giving me the option to purchase it before putting it on the market. Since I'm not familiar with the area, looking for any info that will help me make the decision to purchase or not. (i.e. have RE prices increased in the area, is there room for additional appreciation, how is the STR and LT rental market, any new housing or commercial developments? Any new employers in the area?

Seems to me that it is such a small town that there isn't too much info on the internet. Anything helps! Also looking for an appraiser and someone who can give me a quote for adding AC to the cabin. 

I'm looking for some advice regarding structuring a deal through seller financing. The owner of the property is a relative, who purchased the property (condo in Miami) for $200K in 2014. She's 90 and looking to remove herself from having to deal with tenants and the property altogether. She's been renting it for $2,800/month and the condo has a $600 monthly HOA.

I want to offer her $350,000 for the condo (its a fair price for it), 5% down payment ($17,500) and pay her monthly $2,000 for 3 years, after which I would refinance and pay her out. I am considering posing this as a zero interest deal, so the $72,000 ($2,000 x 36 months) paid in the 3 years leading up to the balloon would go straight into the principal, and so will the $17,500 down payment. I would have to find financing in 3 years for the $260,500 remaining to be paid. She has the title to the property as it is fully paid off.

Questions:

1.) How do I set up the documents to do this? I assume I need an attorney, any recommendations on anyone experienced on this matter?

2.) I assume we would use a title company. Any recommendations for title companies familiar with this? Also, does the title go to my name at the time of closing?

3.) Thoughts on how to pitch this to her? She's wants to sell it and remove herself from the equation. She doesn't need the money, so its more of a matter of recouping what she invested, and making somewhat easier on me to be able to pay her back.

Thanks for any advice.

Hi, 

I'm looking for some advice regarding structuring a deal through seller financing. The owner of the property is a relative, who purchased the property (condo in Miami) for $200K in 2014. She's 90 and looking to remove herself from having to deal with tenants and the property altogether. She's been renting it for $2,800/month and the condo has a $600 monthly HOA.

I want to offer her $350,000 for the condo (its a fair price for it), 5% down payment ($17,500) and pay her monthly $2,000 for 3 years, after which I would refinance and pay her out. I am considering posing this as a zero interest deal, so the $72,000 ($2,000 x 36 months) paid in the 3 years leading up to the balloon would go straight into the principal, and so will the $17,500 down payment. I would have to find financing in 3 years for the $260,500 remaining to be paid. She has the title to the property as it is fully paid off. 

Questions: 

1.) How do I set up the documents to do this? I assume I need an attorney, any recommendations on anyone experienced on this matter?

2.) I assume we would use a title company. Any recommendations for title companies familiar with this? Also, does the title go to my name at the time of closing?

3.) Thoughts on how to pitch this to her? She's wants to sell it and remove herself from the equation. She doesn't need the money, so its more of a matter of recouping what she invested, and making somewhat easier on me to be able to pay her back. 

Thanks for any advice.

Hi Bette, 

Are you located in the South Florida area? I'd be interested to chat. Recently purchased my first investment property and would like to learn a bit more about tax planning and how can I start to prepare for it. 

I'm a CPA as well, but don't have the real estate expertise. I'm focused in financial services. I'd like to share thoughts if you are interested. 

Hello, 

I’m from South Florida. Recently purchased my first investment property and I am now in the hunt for my second property. I’d like to purchase a home in Ocala, FL but I’m not too familiar with the area. Anyone can recommend certain zip codes as to where to look? 

I’m looking for something in the $200 to $300 range.

Hello guys, just an update and additional feedback needed. 

The appraisal came in above asking price, and the seller gave me a credit for $2,300 to repair the electrical panel. 

On a separate note, I need some advise on the following: 

I met with my realtor, who happens to live in the condominium where I'm buying this property. My realtor indicated that based on the latest owners/board members meeting, the assessment that the condo is currently going through (which I'm paying $13,5K at closing), is currently over budget. As a result, the association expects there will be a second assessment to cover the overages which are expected about $7K per unit. 

With this being said, this information has not been disclosed to me either by the seller or the association. I am past the inspection period, however want to understand what options I have to either use this to further negotiate the sales price or back out of the transaction. 

Could the seller argue that he has no knowledge or the association argue that there's nothing set in stone, thus no need to disclose? 

What rights do I have as a buyer or does he have as a seller that will obligate me to remain in the transaction?

I appreciate the responses. I'm waiting on appraisal results. I do have an agent that I'm working with. I'll keep you all posted if you are interested. I'm going to try to negotiate the cost of the electrical panel repairs as long as the condo appraises. 

Thanks for all the feedback. 

Hi Ray, 

Thanks for the feedback. The cashflow is based on using this as a mid term rental, not accounting for vacancies. I've spoken to some property owners that have the units in Airbnb and thats what they tell me. 

Either way, thanks for the feedback. The $3.6K is just the tipping point for me. Considering all the other repairs I would need to make, the repair budget is looking more like $20K. I guess I'll have to wait on the appraisal to make a decision. 

Thanks, 

Sebastian

Thanks for responding so fast. I’m waiting on the appraisal. A similar unit in a building with more rental restrictions (can’t rent for first 2 years of ownership) sold for $325K in the last 6 months but had an updated kitchen. I offered asking but he countered asking and the assessment. 

Trying to figure out if I can get some sort of credit from him after the inspection. Otherwise walk away?