All Forum Posts by: Christian Lincoln

College housing. They crank it up over 70 and then open the windows. Paid $5000 in heat last year in one house that well insulated. Thinking about a "nest". A way to remotely control the thermostat or take away their access. Any thoughts any help?

College housing. They crank it up over 70 and then open the windows. Paid $5000 in heat last year in one house that well insulated. Thinking about a "nest". A way to remotely control the thermostat or take away their access. Any thoughts any help?

I guess only option is to have friend hold the note, pay the original owner the remaining balance and then set up payment to him at same percentage.  Use property as collateral. 

I have a rental property (7 rents) that cash flows (gross @65, net@ 35), and the old owner holds the note. I gave her 100k and 8% for two years until I could do a refi when My credit got over 700. Now credit over 700 but I didn't show enough income last year to do refi. I'd rather keep the property as the cash flows is not bad. Any ideas? Get a friend to buy it? Seems like 8 percent very nice alternative to the market. Of course I was hopping to refi for a lower percentage.  Thank you gang!

@Christopher Brainard  can you explain how I didn't account for the interest charged to the mortgage in my figure?  thanks. which calculator are you using? (actually this was the owner of the house's calculation, not mine).  thank you.

Thanks guys. Yes, I say 8 on the upper range because I avg 6 (gross) on one down the road. But this one is a better location. The whole point would be the BnB in a town very short on BnB's.   Again it's 3 units.  Current rents make no sense - I need to renovate for new rents.  With no BnB I could renovate and double current rent roll to 4,500 or so.  So let's say 4,500 to be conservative.  Gross.  1728,00 mortgage, no management, I live nearby. Does this seem more feasible?  (Basically gorgeous neglected Victorian in middle of beautiful town). 

What do you math--numbers--oriented peeps think about this deal. Assuming the sale price is okay.  Owner-held mortgage.  3 units I can alternate between AirBnb and/or longterm rental (probably averaging 2,400 rent roll first 2 years - long term tenants -, then after some reno, and new turnover, Bnb, averaging about 6-8,000 month, really) because it's located in a place short on hotels and BnB's in a very popular town. My gut tells me he's making up for lower sale price with interest rate, so that's where I need to haggle. Thank you in advance.

Sale Price : $ 284,000.00

Down Payment : $ 64,000.00

Mortgage Amount $220,000.00

Mortgage Terms 4.9%, 15 Years, Balloon payment after 5 years

Monthly Payment : $ 1,728.00 Automatic direct deposit. You pick monthly due date. Penalties for Late payment.

Ballon payment after 5 years : $ 116320.00 (220000 - (1728 * 60 payments))

No Survey Necessary
No Title Insurance Necessary

Your thoughts

50/50, is the way a lot of people get started. It's not perfect but it gets the ball rolling, despite what all these people are saying. It's very common. When you have several under your belt, and cash in your bank account you have a few more options.  I charge 50% of my usual carpentry hourly, and deduct that from sale price as well. 

"What you may be going through is what I am going through now- should the contractor be paid for his labor as an expense in the project that will be reimbursed before we split the profits. If so, I'd argue I would need a finders fee for getting the deal, a % for project management etc. It could get messy. Don't want to hijack your thread, but I'd be interested to hear what others thought about that."

Any thoughts? Anyone? Does contractor deduct any of his labor costs at sale of flip? (other than a helper and materials of course). Fuel? Discounted hourly? Trying to set something up now.

Having been in the game now for six years, I will say the overall tone of Bigger Pockets is much more realistic than all the other "get rick quick" real estate investor sites. However, a warning to novices. Things are more complicated than they seem, even here. There is an optimism here that is not entirely pie in the sky, but you have be ready to face a lot of complications in this game.

Just this month alone:  mortgage criteria for rehab loans, lots of paperwork, special inspectors, bank appraisals that come in differently than expected, stalled market conditions throwing off sale predictions, financial scrutiny. Asbestos surprise. Delays because of permitting, septic complications,  etc, etc it goes on and on.  So if you are not ready for this stuff, keep your day job.