Tyler, TX · Member since 2015 · 25 posts · 9 votes
Need help with seller financing!! I'm looking to BUY a small 9 unit complex. The seller is older and would like this to basically help with retirement. He's even willing to go 2% interest!! But he wants around $250k for the complex... need some advice on how to structure the deal AND what price I should counter with. Basically need help with structuring the deal and possible value adds on the deal. Below is info on the property and I will attach financials shortly.
- each unit rents for $695-$750 a month
- almost always 100% occupancy
- currently ALL bills are paid
- built in 1930s but its actually been updated and in good shape
- had a fire from a candle 1.5 years ago and that's the reason for the recent high repair costs etc.
- 2014 net income was $25k
- 2015 net income was $34k
- 2016 net income projections are $40k
- owns stove and fridge in all units
- does all repairs and maintenance himself
Investor · Roseville, CA · Member since 2009 · 1k+ posts · 583 votes
9y
dont forget that if you look at an amortization schedule where 225k is financed at 2% with monthly payments of 2070 per month 1700 per month is going towards principal. In 5 years you will only owe 116k at that point you can go another 5 years and own it free and clear or refinance it and pull cash out plus lower your payment to get that cash flow. Your payment would go back under 1k per month.
Tyler, TX · Member since 2015 · 25 posts · 9 votes
9y
Brian DiCola I found this deal from a yellow letter mailer. He had owned the property for 50 years! When just starting out investing and trying to find deals... yellow letters are the way to go. I've come across some amazing deals. You NEVER know people's situation. Almost EVERYTHING is for sale... just depends on what you're offering and the owner's situation.