Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
I have a package of 6 houses I am trying to acquire and am wondering how to structure this to make it attractive to private lenders. Seller is a really good landlord, has made significant repairs and is going to hold onto these if I don't buy because of the strong income. His wife just got a great job out of town so he's moving. Here are the details:
* 6 properties
* $116K PP ($19,333.33 per property)
* $4,200 gross income
* 4 of 6 have Section 8 renters
* All have many new systems including roof, plumbing, electrical, HVAC, etc.
I would think 12% would be attractive enough to a PML unless they were 100% exposed. How much are you putting down? Would current owner take a $15-20K 2nd? As you know, $116k @ 12% is about $1400/mo. debt service. Would this deal be worth only $700/month to you?
Also, can a non-licensed person legally loan you more than 11% in Michigan? Same question for balloon payment? Good luck.
Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
12y
@paul jamgotch
I am looking at going in for no/low money down. Maybe $5K max. It doesnt appear the seller would take a 2nd as he wants to cash out his loan and is selling for loan amount, no more. As for the monthly cashflow, the expenses are around 40% vs. 50% so there would be approximately $1,100 left, which I am comfortable with.
Not sure about the interest limit, but I will check into that.