Eye on Two Beginner Properties

3 Replies

Ok. So I was looking on Craigslist, and I came across 2 properties I think will be good to start with. I need advice.  

Home #1: $30,000. 2b/1ba. Comps in the area around 85-95,000. University very close as well as elem/mid/high school. Its a great location. Floors need to be repaired and some joists replaced. I contacted a contractor to do a walk through with me. 

Home #2: '99 Mobile home. $11,500. Here's what the add said "single wide 2 br, 1 ba home, very good condition, new roof 2014, new vinyl flooring and carpet, washer/dryer, dishwasher, stove, refrigerator included. Can't beat this price. Also has nice shed, roomy front deck and stairs off back door. Located close to shopping, schools." The pictures look real good. Appears tenant ready to me. Beside my personal distaste for dated wallpaper (which is easy fix) it doesn't need any major repairs. 

I think they're both good deals, and this will be my first investment so I have some jitters (good jitters tho, I'm excited). My hang up is how to fund them.  My credit is not the best (student loans) and I'm tired of letting good deals pass me by because of funds. What should I do? The properties arent expensive (as far as real estate goes); so maybe if I go to a bank with a plan theyll give me a shot? I do have some savings. And I have a wealthy friend I could potentially partner with or get funding from, maybe. I don't really want to deal with family. However my fiancés uncle who has some rental properties in Clarksville said he may be interested in partnering up. Any suggestions on what I should do, how to structure deal? Anything I haven't thought of? 

Thank you,

Autumn 

Autumn,

I'm a Clarksville area investor as well.  Family partnerships can work, but I'd recommend talking through all the details and getting everything in writing.  Clarksville has some areas  I avoid, but it comes down to what you're comfortable with.  Best of luck to you.

John

maybe see if either one or two above is open to owner financing.... With credit issues (and you did not mention work history) the bank may or may not be an option... Perhaps a loan in exchange for a promissory note and maybe second mortgage from one of these people in your circle (rather than partners) might be an option... Lots of angles and loops, but a young ambitious person has put these types of things together many times (you are long on ambition even if short on funds, so use what you have..convince them). For example, try a 10 percent owner finance offer on number 1, using a loan from someone you know as the down payMent and later give them a second if they want security.. Maybe keep the interest rates 5 percent or less and 15 year terms  simple fixed loans, close everything through a title company ....but make sure the numbers work for you..