Des Moines, IA · Member since 2013 · 50 posts · 0 votes
I am looking at a 4 plex that could possibly be a 5 plex. Two units are currently being rented one for $600 one for $750. The other units need to be completed. The repairs that need to be done would be around $2000 to finish the other units. The owners realtor is asking $280,000 for the property which would be what it could potentially sell for or higher once it is completed. The owner is willing to negotiate with us on us buying it at a lower price. She still has a mortgage on the property and I cannot get a traditional loan right now. Her payments are currently $800 per month. I need some advice for creative financing on this property, I currently live in Iowa so anything I would do needs to comply with our laws here. I have heard about a land contract, would this potentially work or am I thinking about that wrong?
Investor · Waconia, MN · Member since 2014 · 238 posts · 104 votes
11y
@Jeremy Collins this sounds like it could be a good one! Do you know how long the current owner has owned or how much equity they have in the property? Odd that the other units are not rented if they have owned it for a while and still have a mortgage. I think that asking for owner financing is always worth a shot. Just make sure you figure how much you can still put down and what % interest will still work. Most owner financing works when their isn't a mortgage on the property but that doesn't me you can't ask.
If you can't make it work please let me know where this is at. I may be interested myself. Or if you have any ideas maybe we partner and I can help you out. Unless this property is on the East side of DSM....
Chandler, AZ · Member since 2013 · 12 posts · 1 vote
11y
Hello!
I have been working with Jeremy on this, I went to look at this today. here are some of the numbers we found:
The current owner purchased in 2010 for 200k with a 70K down payment.
I estimate that this can rent out fully at 3250 a month.
The owner was going to have someone else repair and manage this, however that is no longer an option and they want out.
currently they have a family friend repairing the property, this contractors has several other jobs he is working on and cant devote a lot of time to this.
Jeremy and I were trying to think of some ways for us to finance this property with no money down. we were thinking of something subject to existing financing. we know the owner is a bit flexible. if you want you can message one of us and we can talk about this further.