Updated over 10 years ago on .
Land Contract Structure
Hello Bpers!
I am working with a motivated seller who owns a duplex free and clear. She was referred to me by my father for advice and possibly a listing because I'm an agent). After speaking with her, I found out she is open to a land contract based on her receiving monthly payments and getting a ballon payment in the future. I am seeking feedback on the terms and structure this to make sure all my basis are covered. As I mentioned, I am an agent so I know I must disclose as much as possible. Below are the details I have acquire thus far..
- Duplex (2 units)
- 2 bedrooms per unit
- Both units are vacant
- Needs roughly 3k in repairs both units total
- As is comps 65k
- taxes $258.33/ month ($3100/ year)
- Average rent is $750 based on rentometer (section 8 would probably be around $900)
- Management would be anywhere from $150-$180 per month based on 10% of gross rents (However this is something that I would need to find so I am open to referrals)
- Maintenance $100 /month
- I want to net at least $500/ month
- I have kicked around between $400-600 per month to the seller but I told her I would have to run my numbers and make sure it made since..
Any Feedback??
Sean P. 773 406 7142