Lenders will want to know if the property is generating income and if it qualifies for a DSCR loan or traditional financing.

@Jacqueline Wright  Every auction is different so the first items to check: do they allow financing if you win the auction? 

Consulting a tax professional now can help structure ownership and financing efficiently, ensuring you take full advantage of deductions, depreciation, and potential tax-saving strategies like 1031 exchanges in the future.This post does not create a CPA-Client relationship.

Fortunately, I was able to acquire both properties at a good price on seller financing.

Brand new construction - seller is asking for a premium that isnt attractive to prospective buyers acquiring commercial financing.

If you ever need guidance on financing options for flips, rentals, or new construction, I’d be happy to help.

TERMS- Deal Type: Seller Finance- List Price: $580,000- Purchase Price: $780,000- Seller Carryback: $693,000- Total Entry: $100,000 Breakdown: Assignment: $13,000 Down: $87,000- PITI: $2,657 Breakdown: Principal & Interest:: $2,000 Taxes: $464Insurance: $193- Rent: $5,250 ($750-800 per unit)- Amortization Years: 28.88- Interest rate: 0%- HOA: NONE- Balloon: NONE- EMD: $5,500- COE: Feb 12, 2025- Occupancy: Occupied, Occupants staying post closing- Title company: PROPERTY DETAILS:MULIT-FAMILY7 Units - 2B/1B per unit- Living sqft: 5,200- Year Built: 1940- Age of Roof: 1- Age of HVAC: New- Age of Water heater: New- Condition of Electrical: Good working condition- Condition of Plumbing: Good working condition

How did you finance this deal?

How did you finance this deal?

On market with motivated seller - negotiated $175k off list price How did you finance this deal?