All Forum Posts by: Alexis Morin

I'm looking for a remodeler to help us get an older house into shape north of DFW.  Anyone out there who has recs?

My husband and I are working through a deal that we'd like some thoughts on...  it's an owner financing deal on 8.7 acres in Pilot Point TX (45 minutes from downtown Dallas).  The place has two homes (4/2 victorian that needs paint, AC, and roof but has updated plumbing and electrical and a 2/1 that's currently a rental and has been updated) and pasture otherwise.  We'd like to buy it and make the victorian a short-term rental and the small house a longterm- unless someone can see other strategies!  We currently have free housing through my job so we don't need to move.

I met with the city and it is zoned SF2.  We also measured the property and it has enough depth to put in a road and develop it.  So, I'd like to re-plat the houses, retain them, then sell off the land since I am not a developer and don't want to deal with that part.  I want to hold the two houses.  

The financing: owner wants $300K down on 1.2 million ticket.  He's proposing 15 yrs at 6%.  My husband and I are cash people so in our minds we are thinking about how quick can we get this paid off?  He has a horse training business so we have variable owner distribution amounts  (anywhere between $50k-$200K annually) on top of our two salaries (total $8,000 monthly) and our monthly rental income (net after expenses approximately $4,600/monthly)... but I don't want this deal to just ZAP all our cashflow.

I'm trying to look at it from more directions than just "paying it off" this since it seems like we will have a better shot at retaining it for a few years then selling as Dallas gets closer.  We'd be taking a commercial line of credit for the DP through my husband's business.  I need thoughts on more creative financing.  I've consulted with a realtor in the area who has 40+ years experience here and he is telling me this is a very good opportunity... Is it?  Does anyone out there have experience in this market or thoughts on this deal?

It's the biggest deal we've done and my goal is to transition out of my W-2 into managing our real estate so I don't want to mess this up and I want to learn!  My biggest problem is that we have been so plan Jane in how we've invested- all cash in the same Wichita KS market... need to get more creative.

Thanks for any thoughts and if you're a developer in north Texas- please reach out!