All Forum Posts by: Travis Konermann

@Jamie Jones^^^

@James Jones I'm 18, just graduated high school, and have two parents who gladly house me for free ATM lol

Okay I have been working very hard for nearly 8 months now, learning everything I can about real estate investing, going to investor meet ups, saving money...just anything I can do productive to get my first deal.

My original plan was to house hack a duplex or triplex in the area and try to get a low down payment (through FHA) but as I was talking to my mom and asking her about her rental properties I asked if she has considered selling this one property she got about three years ago for a discount price($39,000). We've put some sweat equity into it already and it has been rented to the same tenant for the three years she's owned it for $550/month (i think i can get $600 without any rehab). That tenant needs one more bedroom since she's having a baby and the house is 2br 1ba. My mom is looking to acquire a 3br rental so she can keep the great tenant she has but i saw a good opportunity and asked her about seller financing.

I've ran the numbers multiple times and different ways. I've looked at recent houses sold nearby and houses being rented nearby. I really like the deal even if i offer her $42,000 because i think the property could sell for $55,000 with a small cosmetic rehab.(Maybe $5,000 worth but i would get a contractor to price the rehab for certain and an agent to tell me what they think i could get for it in better condition)

I don't really know how to structure a seller finance deal though!!! this is where i need your help

I think i can get the property for $41,000 with $1000 down. (I assume there are no closing costs). Should i structure a 30 year amortization period and use a BRRRR strategy to refinance into a smaller interest rate after about a year of building credit and a few months to rehab? (we will probably settle on an 8.5% interest rate).

My main questions:

Should i use BRRRR strategy, or can you even BRRRR if you're using seller financing?

How do we get a contract written up the correct way and make it legal? (get it notarized?)

Does the interest rate look okay?

If i want to rehab and update it how long should i wait before refinancing if i choose that path?

would the house technically be in my name if i seller finance or would I have to achieve 100% of the equity?

ANY answers help!! I don't want to walk into my first deal blindly. I will continue to research seller financing but if you have any other good seller financing tips or first deal tips I would really appreciate it.

@Greg Scott thanks greg, I'm with you on the no credit thing. I should've better stated: I was either going to buy one of my moms houses through seller financing soon because i could actually afford that deal or I was gonna hold out until I can build up some credit and then use my first time homebuyers loan to finance a bigger, more expensive multi family and house hack. I almost feel like it would be better dipping my foot in the water with a safety net (My mom) instead of jumping right into a bigger multifamily.

@Brett Snodgrass Hey thanks a lot Brett!

Okay BP so i'm looking to get into my first deal and i'm looking at two different options.

option 1: Buy one of my mom's rental properties from her with seller financing.

option 2: Use an FHA first time homebuyers loan to by a duplex, triplex, or fourplex.

My main question is if I use seller financing through my mom and attain my first property that way would I still be eligible for the FHA first time homebuyers loan since I technically won't be living in the seller financed SFH rental property?

the reason I want to do it this way is because I still don't really have any credit and I think the best way to learn would be through buying one of my mom's cash flowing property's and learning the day to day tasks with owning an investment property and dealing with tenants.

Thank you Jim! right now I'm trying to connect with local investors and agents. Do you have any website recommendations on how to find out about new developments or upcoming changes to any RE space?

I am fairly new to REI and i'm constantly researching houses and studying different deals and reading books and trying to expand my knowledge. Throughout all of this I've picked up hints about the different real estate markets that I'm close in proximity to (I live in southern Indiana about 15 minutes from Louisville, KY) and I figure one of the first steps should be just really getting to know your local market and how it performs and i'm just curious how I can go out and study the market and learn as much as I can about it before I jump into a certain area. Mainly things such as what area's will appreciate better compared to other areas and when is the right time to buy and things like that.

any input would be great!

I just stumbled upon this post and found your reply very informative @Ben Wilkins. Thanks for going in depth on that.

hey biggerpockets users, So I wanna get in on my first deal and I'm 18 years old with little capital but my mom is about to buy a new rental property because one of her renters wants to upgrade to a three bedroom (great renters always pay on time) and I was wondering what the best way to structure a deal between me and my mom where I maybe get 30% of the interest in the property by putting up maybe closing costs and doing a lot of the fix up labor. Any helpful input on how we could structure the deal would be great!