I’m a new investor that is looking for my first deal.
I have come across a duplex listed for sale by owner for $135,000. Both units are already rented to long term tenants for $750 a month. Location is South Bend Indiana.
I have no capital to offer in the deal as of right now, but I would like to approach the deal as owner finance. I cannot house hack the property since both units are already rented. I don't believe that i personally need to have capital to get started, but every time i find a deal that i get excited about i get frozen, don't act, and lose the opportunity
First thing I need advice is how can I approach a deal with no money?
Second is the actual numbers for the property. I feel I need to increase the rent per unit by $20 a unit to be where I want to be.
i have done everything i can to get involved in investing in my local area. I started a Facebook group for local investors, i attend seminars, i reach out to sellers, talk to agents, etc. I can get a heloc on my current resident, but that is the only option for me personally to come up with any sort of money. I have friends and family that are interested in getting involved, but i want my first deal to be on me to prove myself first.
I appreciate any and all advice!
@Korey Scott What neighborhood is this in? Sounds like a thin deal in this area especially with seller financing. If it is a good deal then you just need to fish around to see if the seller would be interested in seller financing. Ask questions to see what they want the money for and why they are selling. Tell them the benefits of seller financing for them.
I agree that it’s a thin deal for South Bend. My newly acquired duplexes perform at 2% without trying too hard.
i figured it out. 2% is great! all that i want is $100 cash flow per door. i can adjust rents with the current tenants. i will talk to the owner and just talk with them on why they are selling and go from there. There is a first time home buyer program in this area. We own a house but its all in my fiance's name. I will use that program for whatever deal i come by and pull a heloc on our house for any issues with the property. I admit the deal is lien, but its a newer property and close to home.. we will see.