So my wife and I can get a loan and we want to get a multifamily to "house hack" but everything is out of our range. Our thinking is to find a multifamily around Denver, Co in which the owner would be willing to let us take over their payments/seller finance, but I'm not exactly sure where to look for such folks. Anyone got any ideas?
By using very specific lists. Multifamilies in foreclosures, tired landlords, tax liens by sorting on age of ownership, age of owner and some super networking should do the trick. Really, it's just being very likeable. If the seller doesn't like you, is in a very tight spot,wants to rob you blind, seller financing is one of the dreamer options. Unless you just happen upon someone who understands money and is ok with the time valuation. Well hell, it's doable, unlikely but doable.
I hope it works out nonetheless. Keep posting here with any questions and I'm sure someone more knowledgeable will answer the specifics.
Just don't give up!
Expired listings are another source. They've already told you they want to sell by listing the property. They probably would rather not re-list. Work on their pain points and sometimes they'll go for it.
@Austin Faux what is it that is keeping you from getting the conventional loan and financing. Payment amounts or down payment? When I run into seller financing, they usually want large down payments. I completely agree with @Justin Fernandez , not likely and probably only found via lots of direct mail (think $). I know you are tech savvy so set up a Craig's List ad and see what you get. Most would be scammers looking to take advantage of you but you might snag the heirs of a building that want cash flow without management issues.
Hi @Austin Faux How far 'out of range'? As you probably know you, you would be able to count some of the income from the other unit(s) --usually 75%-- for qualifying. There are some small multis coming up on the MLS that wouldn't be a great deal for a straight up investment but might be good for a "live free/cheap in expensive Denver" scenario.
Well, things that would work for you may go fast, but they are certainly showing up.
@Austin Faux you might also consider a master lease. You could lease the property for a year or two with an option to purchase in 2 years. If you can get locked in at today's prices and do a good job of managing, you can then buy at a good discount. You might have to go with a commercial loan unless you can save for the down payment during the time you are master leasing.
Friends don't let friends buy off the MLS. You have to find the right seller and the MLS doesn't typically have those type of sellers.
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