All Forum Posts by: Wendy S.

@Caroline Gerardo thanks a lot.

Yes to keeping existing Tenant who brought the deal to me and will be partnering on for future deals. He is a sub contractor who would like the option to buy me out later or get equity in deals.

@Jossalyn Wallace, thank you. Yes, Lender does have such an option but they require closing in an LLC with 5 years IO and 25 years amortized.

@John O'Leary thank you.

 Thanks Jojn

Hi BPers

So I'm looking to buy an off market property in Lakeland FL with a DSCR loan.

Can anyone shed some light on the area, this loan product and possible recommendations for closing attorneys in Lakeland FL, I'm in GA.

I'm seeing interest rates 7.5 to 8.5% with 25% down. Speaking with another Lender for 20% Dp as well.

PV should be around $200K with existing Tenant remaining in place.

Pp = $150/160K

Thanks

@Chris Davidson thanks Chris. Yes he's bad some bad financial and after 30 years trying to start over. He did pay down the agreed SP of $150K to now owing $70K but yes that's just part of his debt hence needing cash to clear himself out of a hole.

That's why I am thinking more buy out he can remain and pay close to market rent. Then come stage 2 we can assess payment for work or equity. Heck, the option to buy me out later is also negotiable.

Good evening all, hope 2023 is going great! I would like some help in structuring a deal.

Prospective Partner (Pp) owes $70K to owner on a paid off property with PV of $200K. Pp has no money and bad credit.

Conditions were rent to own, $70K owing and owner wants to be paid off.

Option 1

I pay off $70K to owner, then get HELOC for $150K (75% ltv on investment property). Pay out PP $80K minus loan fees and recapture my $70K. Pp pays market rent ( currently paying $1,400 with $600 going towards paydown).

Is a $17K lien on said property for Pp reasonable or 10% equity position for them?

Option 2

Buy property outright from owner with 25% DSCR loan at 8.5% for $200K with them getting their $70K and Pp gets $80K. I now control the property with loan attached. Pp pays rent which will be used to repay the loan. Again what would be a fair equity split for Pp?

Pp wants to improve property to 3 separate units, with him doing all the work, then have equity with monthly cash flow while renting 1 of the 3 units.

Or option 3...suggestions?

I want a win-win 50/50 if possible.

If remodel doesn't work then property could be resold for worst case

($200K-8%-150K)/2 = $17,000 each.

@Peter Shutt with multiple windows this cost could quickly add up.

@Dan Heuschele thank you for your input so if I need to consider next go around it will be beneficial. I do have a 14 days notice to make adjustments if necessary. It's really days yet but ESA has been gentle so far. He did bark a bit when other roommate returned from vacation. Roommate was understanding as he suspected the ESA was smelling the other 9 dogs on him from his visit home.

I did notice the physician had an expiry date on the letter and when I checked the registry it seemed legit. As far as I know Georgia has no penalty for bogus ESA.

@Wendy S.

I probably should have given some context. Daughter had a friend over for Christmas who has an ESA. Because we have a no pets policy, daughter helped get ESA housed with a pet care agency which was good.

Friend disclosed that she needed a place come January.......I invited her to apply for a spot that would we empty in our basement Dec 31. However before I did this, I extended her stay with us from Christmas weekend to end of year and told her to go get her ESA. She provided her letter and supporting documents and I checked the registry and all seemed well. Dog was amazing and responded well to his commands and was loved by the household. So they move down to the basement tomorrow.

Yes full application was received like a regular applicant but ESA is new territory for me and I can perhaps see more into the future.

This is what I came up with:-

Tenant is allowed to have ESA NAME as an ESA prescribed by her physician. Tenant is responsible for said ESA, and is aware that any damage to Landlord's property, other occupants of the house, visitors and neighbors will be the sole responsibility of the Tenant for which damages will be sought directly from Tenant. Tenant further agrees to maintain proper medical records, and required treatment for ESA NAME to ensure that he is in good health and not a danger, or nuisance, to any occupants of the household, visitors and neighbors.