Should I start off with this deal as my first ever investment?

Should I start off with this deal as my first ever investment?

Specialist · Tulare, CA · Member since 2014 · 72 posts · 48 votes

My first buy an hold opportunity..

Triplex - Fully occupied

listing price $170,000

(DOM: 73, CDOM: 257)

Unit A & B: 2/1, Unit C: 1/1

All 3 units rent for $550 (room for increased rents)

*Seller is willing to carry back a first trust deed with a 20% to a 30% cash down, 3-5 years at a 8% interest rate. 

**Seller currently has 3 properties in totaling $465,000. Cash offer on all properties will get a discount of $40,000.

Confused on the sellers terms/options?

Deal or no deal on a surface level?

Looking for cash flow. Will be primary place of residence (house hack) for 12-16 months.

Any suggestions and/or feedback much appreciated.

Thanks in advance.

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Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y

@JDee Moore carry back means he is willing to finance part of it.  First deed of trust mean the sellers note is in first position which means you’ll need all the other cash or the seller finances all of it since no bank will be in second position 

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  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Jerry Moore I wouldn’t do this deal on the 170k property unless you can get it for likely 150 or less. Idk about the other properties because you don’t list rent.
  • Specialist · Tulare, CA · Member since 2014 · 72 posts · 48 votes
    8y
    @Caleb Heimsoth appreciate the feedback... any idea what the asterisks listed mean in my original post? Thanks again!
  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y

    @JDee Moore sounds like he wants to sell them for total 465k.  If you buy all three cash, you get 40k off so I assume 425k.

  • Specialist · Tulare, CA · Member since 2014 · 72 posts · 48 votes
    8y
    @Caleb Heimsoth and carry back first trust deed ?
  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y

    @JDee Moore carry back means he is willing to finance part of it.  First deed of trust mean the sellers note is in first position which means you’ll need all the other cash or the seller finances all of it since no bank will be in second position 

  • Specialist · Tulare, CA · Member since 2014 · 72 posts · 48 votes
    8y
    @Caleb Heimsoth you the man Caleb! Thanks.
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