All Forum Posts by: Susan Authement

I always thought i would have to do "All of it" myself. I recently watched a few webinars and read on forums where one person will provide the down payment and the other provide financing or do contractor type repairs/maintenance on smaller rental properties. I always thought that was just for the very large expensive deals and transactions. I see now that it also happens in the smaller transactions as well.  How difficult is it to find these types of partners and do you all use them ? Have you had bad experiences doing that ? How do you research the person to be sure they are respectable above board people who are not out to scam unwary people new to this like i am ? 

Im going to attempt to place a renter in mine, i can always sell it outright if i have issues,my area seems to have a shortage of houses and rentals both. Good luck !

I forgot to mention that if you take a cash out refi then place a renter in it the rent collected would cover the new mortgage. In a sense the renter would pay for the costs associated with accessing that equity (IE a likely higher interest rate and larger mortgage amount). That equity money is non taxable i think.  If your rent WONT cover it i wouldnt do it. I would sell it and use proceeds to buy the new properties, i dont think you would have capital gains tax because its your primary but im not a accountant so double check that. 

Hello Zachary, I find myself in a similar situation as you. I am not a expert, just a normal person. Im even new here. so keep that in mind. I entered a rent to own contract on a house in rural AZ 4 yrs ago (waiting to close now). Rental amounts in a small town around me are lower than a city and rural areas outside the small town are even lower. I ran the numbers and i think i can break even after i pull out the equity with a renter in place. I cant cash out refi this on my timetable because Im considered a renter not owner right now. Due to the new owner restrictions on how long you have to "season" the loan before taking a cash out refi i have to wait i think its 6 mo. . .Since you have been living in the home as owner i dont believe you have to wait that period like i do but double check that yourself. I would probably do a cash out refi and place a renter in it. I would use the equity money i got to place a down payment on (This might solve your living arrangement issue) a duplex or tri plex. I would live in one unit and collect rent from the others . You could build equity while there by doing simple upgrades like painting, flooring etc while you get a hang of being a land lord. Depending on how much equity you pull out you might be able to buy that property out right or put a very large down payment on it. After sprucing it up you can pull equity out of it (the down payment dollars and what ever added bonus equity you get from fixing it up to 80-85 % or VA 100% if your a veteran. You could use that to move your family into a single family home if you dont like living there. You can even hire a company to manage it and not let tennets know your the owner and living next door :-) Hope that helps and wasnt confusing

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,000
Cash invested: $10,000

Rent to Own Contract .
Purchase price : 88K.
Down Payment : 200.00/Month Installment plan over 4 yrs .
Details: 775.00 Monthly rent + 200.00 down payment installment over 4 yrs gave me a 10,000.00 down payment and 4 yrs of home appreciation.

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

After a divorce late in life ruined my credit i was unable to obtain a financing to purchase a home. I was in danger of becoming homeless. I placed an ad online asking if anyone would sell me their home with seller financing or rent to own with no down payment. I needed time to recover and found someone who had a job transfer who could not sell home quick enough.

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

I placed an ad online locally asking people to present their offers to me for owner financing and rent to own properties.

How did you finance this deal?

I had owner/seller financing in the contract if i was unable to obtain a mortgage when we closed later in 4 yrs.

How did you add value to the deal?

Luck :-)
Home appreciation over time and simple repairs such as flooring and painting.

What was the outcome?

Success ! Waiting to Close
1. 4 yrs of on time payment history using online auto payments provided a huge boost to my credit score.
2. Credit Score raised from bad to 660+ plus
3. The 660+ Credit score allowed me to qualify for both a conventional loan and VA Home loan.

Lessons learned? Challenges?

I was very lucky the owners/sellers were honest people. I made several glaring mistakes with the contract wording etc that could have bit me in the *** or allowed the owner to walk away with my down payment at the end of the contract and not sell me the house. A quality contract and understanding of what needs to be included and knowing how it should be worded is crucial in a rent to own or owner/seller financing contract.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

NO. Had/having a bad experience with agents currently. Not going into more detail until the purchase is complete and not naming names/companies at this moment while still working with them. Communication and clarity are important when working with agents. Lack of can lead to customers feeling negative about the experience etc....

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,000
Cash invested: $10,000

Rent to Own Contract .
Purchase price : 88K.
Down Payment : 200.00/Month Installment plan over 4 yrs .
Details: 775.00 Monthly rent + 200.00 down payment installment over 4 yrs gave me a 10,000.00 down payment and 4 yrs of home appreciation.

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

After a divorce late in life ruined my credit i was unable to obtain a financing to purchase a home. I was in danger of becoming homeless. I placed an ad online asking if anyone would sell me their home with seller financing or rent to own with no down payment. I needed time to recover and found someone who had a job transfer who could not sell home quick enough.

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

I placed an ad online locally asking people to present their offers to me for owner financing and rent to own properties.

How did you finance this deal?

I had owner/seller financing in the contract if i was unable to obtain a mortgage when we closed later in 4 yrs.

How did you add value to the deal?

Luck :-)
Home appreciation over time and simple repairs such as flooring and painting.

What was the outcome?

Entered contract 4 yrs ago with purchase price of 88K, in process of closing now with a value of 168K to 178 K

4 yrs of on time payment history using online auto payments provided a huge boost to my credit score.
Credit Score raised to 660+ plus (from so low i refuse to state it here. )
The good 660+ Credit score allowed me to qualify for both a conventional loan and VA Home loan.
I am currently waiting to close the VA loan on the house in a couple weeks.
Completed the following minor repair

Lessons learned? Challenges?

I was very lucky the owners/sellers were honest people. I made several glaring mistakes with the contract wording etc that could have bit me in the *** or allowed the owner to walk away with my down payment at the end of the contract and not sell me the house. A quality contract and understanding of what needs to be included and knowing how it should be worded is crucial in a rent to own or owner/seller financing contract.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

NO. Had/having a bad experience with agents currently. Not going into more detail until the purchase is complete and not naming names/companies at this moment while still working with them. Communication and clarity are important when working with agents. Lack of can lead to customers feeling negative about the experience etc....

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,000
Cash invested: $10,000

Rent to Own Contract .
Purchase price : 88K.
200.00/Month Down payment Installment plan over 4 yrs .
Details: 4 yrs: 775.00 Monthly rent + 200.00 down payment installment gave me a 10,000.00 down payment and 4 yrs of home appreciation.
4 yrs of on time payment history using online auto payments provided a huge boost to my credit score.
Credit Score raised to 660+ plus (from so low i refuse to state it here. )
The good 660+ Credit score allowed me to qualify for both a conventional loan and VA Home loan.
I am currently waiting to close the VA loan on the house in a couple weeks.
Completed the following minor repairs:
Repainted entire home (interior and exterior),
Replaced flooring in bathroom and one bedroom,
Refinished kitchen cabinets.
I also made repairs and painted exterior deck.
Doing the above simple repairs has added to the existing substantial appreciation amount.
Purchase price is 88K and current estimated home value is :
Zillow : 151K
Movoto:168K
Redfin: 178K.

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

After a divorce late in life ruined my credit i was unable to obtain a financing to purchase a home. I was in danger of becoming homeless. I placed an ad online asking if anyone would sell me their home with seller financing or rent to own with no down payment. I needed time to recover and found someone who had a job transfer who could not sell home quick enough.

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

I placed an ad online locally asking people to present their offers to me for owner financing and rent to own properties.

How did you finance this deal?

I had owner/seller financing in the contract if i was unable to obtain a mortgage when we closed later in 4 yrs.

How did you add value to the deal?

Luck :-)
Home appreciation over time and simple repairs such as painting, laminate flooring etc...

What was the outcome?

Entered contract 4 yrs ago with purchase price of 88K, in process of closing now with a value of 168K to 178 K

Lessons learned? Challenges?

I was very lucky the owners/sellers were honest people. I made several glaring mistakes with the contract wording etc that could have bit me in the *** or allowed the owner to walk away with my down payment at the end of the contract and not sell me the house. A quality contract and understanding of what needs to be included and knowing how it should be worded is crucial in a rent to own or owner/seller financing contract.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

NO. Had/having a bad experience with agents currently. Not going into more detail until the purchase is complete and not naming names/companies at this moment while still working with them. Communication and clarity are important when working with agents. Lack of can lead to customers feeling negative about the experience etc....

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,000
Cash invested: $10,000

Rent to Own Contract .
Purchase price : 88K.
200.00/Month Down payment Installment plan over 4 yrs .
Details: 4 yrs: 775.00 Monthly rent + 200.00 down payment installment gave me a 10,000.00 down payment and 4 yrs of home appreciation.
4 yrs of on time payment history using online auto payments provided a huge boost to my credit score.
Credit Score raised to 660+ plus (from so low i refuse to state it here. )
The good 660+ Credit score allowed me to qualify for both a conventional loan and VA Home loan.
I am currently waiting to close the VA loan on the house in a couple weeks.
Completed the following minor repairs:
Repainted entire home (interior and exterior),
Replaced flooring in bathroom and one bedroom,
Refinished kitchen cabinets.
I also made repairs and painted exterior deck.
Doing the above simple repairs has added to the existing substantial appreciation amount.
Purchase price is 88K and current estimated home value is :
Zillow : 151K
Movoto:168K
Redfin: 178K.

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

After a divorce late in life ruined my credit i was unable to obtain a financing to purchase a home. I was in danger of becoming homeless. I placed an ad online asking if anyone would sell me their home with seller financing or rent to own with no down payment. I needed time to recover and found someone who had a job transfer who could not sell home quick enough.

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

I placed an ad online locally asking people to present their offers to me for owner financing and rent to own properties.

How did you finance this deal?

I had owner/seller financing in the contract if i was unable to obtain a mortgage when we closed later in 4 yrs.

How did you add value to the deal?

Luck :-)
Home appreciation over time and simple repairs such as painting, laminate flooring etc...

What was the outcome?

Entered contract 4 yrs ago with purchase price of 88K, in process of closing now with a value of 168K to 178 K

Lessons learned? Challenges?

I was very lucky the owners/sellers were honest people. I made several glaring mistakes with the contract wording etc that could have bit me in the *** or allowed the owner to walk away with my down payment at the end of the contract and not sell me the house. A quality contract and understanding of what needs to be included and knowing how it should be worded is crucial in a rent to own or owner/seller financing contract.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

NO. Had/having a bad experience with agents currently. Not going into more detail until the purchase is complete and not naming names/companies at this moment while still working with them. Communication and clarity are important when working with agents. Lack of can lead to customers feeling negative about the experience etc....

Hi everyone,

My name is Susan.  Im a Veteran and former army spouse living in Arizona right now. I was born and raised in Michigan. I am a 3 time cancer survivor.

I have lived all over the world but my favorite as a adult was :  My Victorian Hobby farm in NY along the shores of Lake Onterio, for 14 yrs I lived happily where i raised one obnoxious precious teenage girl who is no longer with us and 3 horses, chickens, peacocks, ducks, dogs and cats. 

I also have lived in the following places over the past 30 years: 

USA :  Michigan, Georgia, Tennessee and Upstate Ny . I also briefly lived in NJ and Lousianna. 

Overseas: Republic of Korea 1 yr and Germany (Hanau area near Frankfort) for 7 yrs.

 I will likely post some information i have first hand knowledge on concerning recovering from catastrophic financial changes later in life.  Including my individual circumstances and the ways i have overcame them to achieve home ownership when it seemed truly hopeless and my plans for future real estate investing to ensure it never happens to me again.  Maybe i can help another person who finds themselves in similar circumstances. If someone could message me the best forum catagory to post that info in I can get right on that. Have a wonderful day . 

Sue