Updated about 1 month ago on . Most recent reply
Want to collaborate on strategy
Hello folks,
I have a duplex in NY and want to move my family back to VT. We're looking at a single family home we can settle into and grow our family. Meanwhile I'd like to keep the duplex and there is a great opportunity near the single family home I don't want to miss. I'm curious if there is a creative way to move forward or if I'm trying to have my cake and eat it too. Here are the numbers...
The duplex was acquired through private lending. I own the deed but I owe the financer 125k, 30yr, 6% int. The appraiser we hired before the purchase appraised the property for 135k. We didn't put any money down and have lived here for a year, so not much equity, but we've made some light renovations. We'll rent both units once we move out and the cashflow will hopefully be around $600-$750/month.
The single family is 289k. Unfortunately it's at the top of our budget. I'd only be able to afford 3.5-5% using FHA loan for 30yr. We'll get hit with PMI and be stretched relatively thin.
The multifamily is a two property combo deal for 250k. One property has a 3 unit and the other a converted barn 1 unit. Renters are there and want to stay. Rent comps in the area are $1300 low avg. I would need to figure out how to get the 20% down payment but my calculations are showing a $2800/month cashflow rate.
Could I buy the 3 unit for 250k and the 1 unit for a dollar and pull a Home equity loan out of the 1 unit to help bring equity into the single family? Should I find a partner and buy them out after 2-3yrs with that monthly cash flow?
I pose this as a friendly puzzle to the community but more honestly I've been bit by the bug and don't want to loose any of these opportunities and would love some advice.
JC