All Forum Posts by: Wesston Faux

this happened to me.  I contacted the title company and they got the money from the guy and gave me a check.

Small timer here. Just bought my first duplex,but i live in Pocatello. I would probably not go the condo route, the only reason being is I think you'll have a harder time renting it and getting your money out of it. There is a large town home development in chubbuck called pheasant Ridge. I don't think that place has ever been filled up. And I know the values of those are the same as they were 8 years ago. (when I was in college and lived there :)). Just my 2 cents. 

Thanks for the info. The deal seemed sketchy in my gut, and I think I'll stay away. 

Hi there,

My question is regarding balloon payments.  I saw a deal posted on realtor.com as follows:

Fully rented brick 4-plex. Seller will finance with terms acceptable to seller. Minimum 20% DOWN, Accept SELLER'S EXISTING LOAN TERMS WITH AN ALL INCLUSIVE DEED OF TRUST. INTEREST RATE 3.25% AT TIME OF LISTING with $600 P & I payment with 3 yr Balloon

1) What is an all inclusive deed of trust?  I looked up some definitions...So the seller still has a mortgage...I pay him, he pays the bank, and if I default he takes the property back?  Is that accurate?  What advantage does this give to the seller?

2)When the balloon payments becomes due at the end of 3 years, how is that paid for?  Does the bank then allow me to take out my own mortgage on the property to then pay the seller off?  Thanks in advance for you help.

Ps, asking is 144k, rent is 1775 total, tax ~3k, unsure on utilities, insurance probably ~45/month

Hi there,

Relatively new to the forum, and bigger pockets in general.  I have always been interested in buying real estate.  I am now at a place I think I can start pulling it off.  I have a duplex I'm looking at that is 79k.  Kind of two questions here. 

1) do you think the #'s add up?  79k purchase, income is 1100 total.  Based on my math, after all expenses (10% capex, 5% vacancy, 5% repairs, water bill ( landlord pays it), insurance, taxes) i'll be making ~270/month (30 year mortgage at 4% with 20% down).  Which seems okay.  Currently both units rented, which leads to my next questions.

2)what happens when you take over an existing rental?  Assuming both rentals keep their tenants do you make them sign new leases?  What about security deposits?  Assume they paid deposits is it the previous owner's responsibility to transfer that cash to me?  Or does he refund them and I make them cough up a new one?  Just curious on the logistics of a transition like this?

Thanks for your help.