Houston, TX · Member since 2013 · 481 posts · 189 votes
I feel guilty of not being very active on Bp lately. so this post will hopefully motivate me to become more active in the forum
I recently bought an old house that will need lot of clean up and work. i paid 78k including closing cost for this and arv is around 125k. Let see if i can pull out a profit on this to post it in the success story forum.
Have anyone here ever work with an awkward old floor plan like this? Do i need to replace the tile roof as well? Can I power wash it? I never work with tile roof before. It also have an awkward master bath with the tub in the middle with no shower
Here are some pictures. any suggestion is welcome! I will post more picture and video as the project progress
Investor · Houston, TX · Member since 2014 · 142 posts · 32 votes
11y
Awesome pictures! This is an inspiration for a noobie like me. Thanks for going into details with your problems and taking pictures. The house looks amazing!
I really enjoyed reading this. When I do my first flip or buy another rental. I will have to do the thread post on my progress.
I'm glad you like it!
so just an update. I am doing seller financing on this deal and we are expect to close next week. I'm wearing a seller hat, lender hat, and agent hat on this transaction. definitely no easy money.
Houston, TX · Member since 2013 · 481 posts · 189 votes
11y
last and final update, we closed the deal!
I'm unable to get a good offer on traditional financing, So i took an offer on seller financing. the buyer put down $50,000 and i finance $75000 for them. 9% interest for 10 years.
Although I don't have the money i want to have all at once but i think it will work out in the long term, with 9% interest and the tax benefit of seller financing will slowly kick in
Now should i work as hard as i could and try my best to pay off the 70k balance on the credit line asap? or just let it float for another 10 years, assuming the interest rate is still around 5%?....
Houston, TX · Member since 2013 · 481 posts · 189 votes
11y
@Andy Holland Thanks Andy! I'm glad i had plan B and hopefully it will work out better than plan A...This deal makes me interested in the seller financing world. I will look into this more. Having a monthly income, pay no tax, no maintenance is pretty awesome
Yes it does. If i want to flip a big house now, I have to focus on paying down the debt on my end 1st to free up the money or ask the bank to increase the credit line limit for the up coming year..
Yes it does. If i want to flip a big house now, I have to focus on paying down the debt on my end 1st to free up the money or ask the bank to increase the credit line limit for the up coming year..
Huy you mentioned increase the credit line. I assume you are talking about a credit line you have on your primary home? I looked into credit lines on my rentals and they told me I can't get any type of credit line on investment property. Even if the property is paid for.
I have been searching for different methods of creative financing for my future plans of home flipping and buying other rentals rather than the tradition bank loans.
Houston, TX · Member since 2013 · 481 posts · 189 votes
11y
@Brian Johnson My commercial credit line is based on my rental house as collateral. not my primary residence.
You are right. Not every lender is comfortable with lending credit line on rental house. But i was able to find a good one is Houston Texas. I will check if he is able to loan outside of texas and let you know.
Don't even bother to go to the big bank, what you need to find is a portfolio lender. They can be found at networking event/ small bank/ community bank.
@Brian Johnson My commercial credit line is based on my rental house as collateral. not my primary residence.
You are right. Not every lender is comfortable with lending credit line on rental house. But i was able to find a good one is Houston Texas. I will check if he is able to loan outside of texas and let you know.
Don't even bother to go to the big bank, what you need to find is a portfolio lender. They can be found at networking event/ small bank/ community bank.
Real Estate Investor · Champaign, IL · Member since 2014 · 15 posts · 6 votes
11y
Congrats on the flip! As someone who wants to get into both flips and rentals (but has more of a passion for flips) this has been a fun discussion to follow. Will be on the lookout for more posts and diaries of deals from you!
Real Estate Investor · La Porte, TX · Member since 2014 · 54 posts · 9 votes
11y
Much appreciation for the thread Huy. I think it was a great idea doing seller financing and might be interested in your contractor info at a later date. If you don't mind giving it out, of course. Good luck in the future.