The pursuit of my first property... that’s also owner financed

The pursuit of my first property... that’s also owner financed

Member since 2021 · 2 posts · 0 votes

Hello guys how it’s going! I am as you can see Adrian! I was apart of the bigger pockets community approx 2 years ago when I was younger when my dad inspired me. I sort of fell off and continued with college. Anyway I am back and more ready than ever. I recently made a new account but always stuck and listened to your podcast. So to begin, I am currently pursuing a property that’s approximately a $100000 the property is owner financed at 6 percent! With 5% down!! Closing cost even covered!!! I plan on renting the property at the cost of my monthly payments (which is easily attainable in the market) to insure the mortgage with taxes and insurance included. I also am Familiar with the sayin that if it’s to good to be true then it MIGHT be. The home is also ready to rent! Taxes in the area are very cheap!!!!!!! I quickly plan on getting a loan from the bank in which I’m pre approved,, based upon past experiences what would you guys say about the Property on terms of an investment.... PS.... my parents used to rent this home and it was a childhood home from me.. so we are extremely familiar with the property. 

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  • Freeport, OH · Member since 2019 · 4 posts · 2 votes
    3y

    First let me respond that I am not an expert investor, but the rent needs to be your expenses plus a reserve amount that will build for "emergencies".  There are so many factors that go into this deal, but the golden rule of thumb is the 1% rule.  Does it meet this rule?  If so then over time, and the option to refinance once the market changes, this should be a good first step.

    Always have reserves, and never "fall in love" with the property.  Fall in love with the deal.  It may be hard since this was a "childhood home".  Emotions will always cloud your Judgement.  Good luck.

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