Quote from @Clay Mansell:
Quote from @Jaycee Greene:
Quote from @Clay Mansell:
Hi everyone! Working on checking off my first steps with my new account. I have experience in economic development and finance, but am looking to build a portfolio to not be 100% dependent on a day job. Looking forward to learning and networking!
Hey @Clay Mansell, welcome to the BP Forum! What type of properties most interests you, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"? Are you looking for properties in your local market or somewhere else?
Hi Jaycee, thanks for the welcome! I'm currently interested in long-term multifamily. I have an opportunity to potentially purchase a condo owned by my parents, as well as half of a duplex owned by my sister who has recently moved into her new husbands home. Both these opportunities aren't urgent, but are in two separate cities from where I live. I'm thinking through seller financing, I could secure ownership of these properties with no money down, and use a 3rd party management firm to handle everything since I am hundreds of miles away (I'm in Dallas and the properties are in San Antonio and Houston). Once I get the properties cash flowing, I can either hold and use the revenue to help me secure financing for future opportunities closer to me, or sell those properties in an appropriate timeframe to pay off the remaining balloon balance and use the proceeds to, again, do something closer to me. I recently got my real estate license and have a good relationship with a broker who will sponsor my license, so I'm not worried about the real estate transaction piece of it.
My biggest factors are 1. I don't have cash on hand to invest as I am saving up for my own home and a new car; 2. I have a pretty demanding day job, so I would prefer a management company handle everything as I will not be able to manage anything during the day, let alone in a different city.
My long-term goal is to get out my 9-5 and work for myself, and I figure if I can't make one of these opportunities work with generous terms and patience from my family, then that doesn't make me too optimistic about the future. I see these as excellent opportunities to start my portfolio of properties.
Any advice would be greatly appreciated! Thanks!
@Clay Mansell Appreciate you sharing. Sounds like you’ve got two opportunities most new investors would trade a distant cousin for ;-) Seller financing from family can be a great way to enter with little capital, just make sure it’s structured like a real transaction: market valuation, written note, recorded lien, amortization schedule, balloon terms, etc. Friendly terms don’t replace underwriting.
The bigger question is operational: these would be your first deals + remote + family financing + balloon notes + no cash reserves. That's a lot of complexity before you build basic reps. Property managers help, but they don't eliminate decisions around CapEx, leasing strategy, tenant quality, or refi timing.
Given your goals, I'd consider taking one of the properties first, treat it as a proving ground, and avoid stacking multiple variables on deal #1. Also think about whether these fit your long-term strategy—if you ultimately want to invest closer to home to leave your W-2, scattered assets in other cities may create more distraction than momentum.
Bottom line: treat these like you’re buying from strangers, not family. If the numbers pencil at market terms and you have a real plan to exit the balloon, great. If not, don’t force it just because the opportunity feels easy.
