Updated over 6 years ago on . Most recent reply
How to structure a purchase from a Landlord who wants to retire?
A couple years ago I purchased a duplex from a soon to retire landlord, with the ultimate goal to sell his entire profolio in order to retire. Last year I purchased a SFH in order to BRRR the property in order to have more capital to play with. Its now time to put this deal in action but I'm not entirely sure what the best route is. Heres what im looking at:
His property: 9 duplex
Asking price: 120,000/ per duplex
He is willing to sell off a few at a time but that will takes years for me to set up. My concern is if i wait on this it wont last. My options are clear but unsure on what to do. My SFH- ARV is right at 130k with my loan at 56k. According to my calculations if i pursue a cash out refinance I can take out 47k and use that to put towards the deal. My other option is to sell the property and 1031 the property in order to use roughly 65k. If you guys can lend some advice that would be greatly appreciated.
Most Popular Reply
Why don't you ask him if he is willing to do a Seller carryback with a smaller down payment (to allow you to secure more with less down)?
The pro for him is that he transitions from landlord to lender, and doesn't have to worry about maintenance or tenant issues. However, he still has the benefit of making money on his investment.