All Forum Posts by: Abad Marroquin

Hi. I am in the Dalton Area. I have lived here since 2000. I am also an investor and would like to partner with anyone in order to do more and bigger deals.

I did not buy the apartments, but I learned a lot. Thank you for your help!

Good News. Two small local banks are interested in financing it.

Bank 1:  5.5% interest fixed for 3 years amortized in 20 years.

Bank 2: 5% interest fixed with a balloon in 5 years.

What do you guys think is the best option? If I go with bank 1 I'll get $458 cash flow during the first 3 years and then it will decrease depending on the variable interest. With a 7% interest I will be getting $387 in cash flow. Roughly $100 per unit.

If I go with bank 2, I will be getting $481 for the first 5 year. Then I will have to refinance it at whatever the interest is in the market. 

I am not sure what would be the best option. What questions do I need to be asking? Should I try to negotiate a lower rate? Any ideas will be greatly appreciated.

Hi Bod Derwin. I don't know if the seller owns it outright. I am buying it through an agent, and he said they want to sell because they are getting divorced. Do agents still get their commission if the seller accepts to do owner financing?

Thank you Chris Coleman. I have been analyzing my exit strategies. (1) In order for the banks to finance it, I need to subdivide the lot. Leave the house on a separate lot, so it will qualify for a conventional loan (will have to check with the county). (2) I have other assets free and clear and I can get a home equity line to pay the mortgage if I need to. If anybody can think of another exit strategy, I will appreciate it. 

I am going to check what similar mobile homes rent in the area to see if I there is any room for rent increase.

Yes I am purchasing the mobile homes too.

Thank you for your opinion Chris Coleman and Greg Leach. I am not sure if I am missing something either. I am concerned about the age of the house and the fact that mobile homes do not appreciate. But you're right it's about 20 % cash on cash return. I have not checked portfolio lenders yet. I definitely will check that too.

A 79 Yearl old house 3/1 remodeled 2 year ago is for sale including 3 single wide mobile homes on same lot all occupied. House rents for $650/mo and singles rent for $100/week. Owner pays water. The asking price is $109K. Banks don’t want to finance this deal because of the mobile homes in the property. I thought It would be a plus because the mobile homes are producing, but apparently for banks it’s not. There is one bank that I just applied and might finance it at 5% interest with a balloon in 5 years. I am not familiar with this kind of loans. Numbers so far look as follows.

Purchase price 109K (home inspector scheduled to inspect it)

Total monthly rent $1950

Property Taxes $57

Insurance $70?

Water $120

P. Mngt $195

Cap Ex. $200

Vacancy $100 (5%)

Maintenance/repair $200

Mortgage Pmt $580

Cash flow about $514 monthly. 

So far the numbers are not looking too god. I might place a cash offer much lower since banks don't want to finance it. A number that would at least give a 15% ROI. Please I need your opinion on this deal.

Thank you Mark.