Updated 4 days ago on . Most recent reply
Creative Financing and Deal Structuring Advice
2 family house (2 units each with 2b/1b) with a commercial garage and office space in the back. Estimated rental income for the apartments is $1700 a piece, plus another $2000 for the commercial garage. This is a total rental income of $5400 per month. The purchase price would be an estimated $350k, and a rehab budget of $100k. The owner of the property, who I have a good rapport with, has a small mortgage but would be willing to maintain ownership of the property or place it in a trust for the duration of renovation. We have not discussed if they would cover holding costs for this time or if that would fall on me. The owner would be willing to either place in a trust or maintain ownership post renovations as well so that we can keep the current mortgage payment which is far lower than what would be possible with present mortgage rates. This property is grandfathered into a mixed use zoning, and offers the possibility of adding a third living unit on the top of the commercial unit in the future. This seems like a great deal especially given my relationship with the seller and their willingness to work with me and be flexible but I was hoping to hear some other opinions and see if there is anything I am overlooking or any other questions I should ask.