Getting Creative... Need Help with 4 Potential Rental Properties
Hey All,
I currently own a four-plex and about to refi out of my FHA. Not sure if I'll be able to pull anything out or get a HELOC, but I met with a guy who owns five rentals with a business partner. They want out of four of them. Here's the skinny:
Bought in 2003-2005 at top of the market. Don't know purchase prices, but they owe approximately $180k on each. They think that the homes have appreciate up in the $225k range, but I haven't seen any of them and they mentioned some work needs to be done on each one. I don't necessarily want to buy them at top retail either. They don't NEED out (aka not your typical motivated seller) but they do want to sell, preferably without a realtor to avoid paying commissions.
They're willing to get creative as I'm a young entrepreneur without a lot of cash and am looking to purchase one, if not all four. I don't think that RIGHT NOW I can get traditional financing, and I don't have the connections for private lenders. I've been researching Subject To, Lease Option, Rent to Own, and Contract for Deed. I don't know the mortgage details but I've been told that because they don't have 100% equity, Contract for Deed is out. I don't know enough about creative financing strategies to try and make this work but I'm determined to buy at least one. Any help would be greatly appreciated!