San Angelo, TX · Member since 2019 · 18 posts · 3 votes
I've been wanting to get into REI for sometime and I've came up on a possible duplex but it's owner financed. What are y'alls opinions on a duplex for a beginning property and also on having it owner financed?
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
6y
Owner financing can be a great thing especially if you can't qualify for financing on your own or if you don't have much cash for a big down payment. With that being said it all depends on the terms that you and the seller are able to agree on. Also make sure you get some good comps to really nail down the value of the duplex. It's not uncommon for sellers to offer owner financing when they overprice their property and know it won't appraise.
Investor · Nashville, TN · Member since 2019 · 95 posts · 65 votes
6y
Obviously don't buy a bad deal, but in all the rage of duplexes nowadays (thanks mostly to BiggerPockets) if you can find one hitting the 1% rule I wouldn't turn it down! Especially seller financing! Have a great opportunity to let it appreciate and fix it up a little bit then pull money out with a re-fi! Just make sure it makes sense without the re-fi, don't want to depend on that to make a deal work.
San Angelo, TX · Member since 2019 · 18 posts · 3 votes
6y
@Will Clark It’s not bad at all. Each side would be renting out at 650/month. After some cosmetic repairs and upgrades of the appliances I’d probably go to 700.
Real Estate Syndicator · Portland, OR · Member since 2014 · 453 posts · 312 votes
6y
Holy Grail! If this is a good deal jump on it!!! My brother, Chris Shepard, and I, if we could do it again would start with multi-family. The metrics are generally so much better and the velocity of your money works so much better. Feel free to put up the metrics of the deal and happy to help you analyze it.