All Forum Posts by: Alex Vargas

Welcome! Would love to sit down and meet with you sometime soon. 

Welcome Chek! Just like others have stated there are pros and cons to both. I would also be one who would like to move my money around, particularly with buy and hold and cash flowing at least $100/door so that all my expenses are covered. Biggest thing I would say is just make sure you know your numbers and that they make sense for now and future as much as you can. Lower your risk as much as you can and learn from what others have done. Also, let me know if you need a home evaluation and help with the sell of your home! Would love to assist.

Hey @Nathan Biehl,

I think Vernon is being a little dramatic.... I dont think people would think you were crazy at all...

Thats IN right now... and I personally have 3 close friends that are building or have already built tiny house's, so there is a market for Tiny Houses especially within millennials.  

I do agree that it will be interesting to see what codes say and getting all that squared away. I'm sure it will be a tedious process. May be best to buy land outside of Nashville as well... because its cheaper, unless the numbers worked.

What do the numbers look like on a tiny house? How much cost to build? What do they sell for? How long does it take to build? I'm just curious.

Build them and I'll sell them for you! Let me know if I can help with anything.

I’d love to help anyway I can!

@Roger Poulin Thanks for the reply. I'll reach out to Staria. 

@Roger Poulin Thanks for the reply Roger, and I completely agree.

I'm curious how would you structure your offer if you were me? 

@Vince Mayer  haha thanks for the response Vince!

That is interesting, I wasnt aware you can exercise the option at any point. 

And absolulety not! I never intended on going through with a $300k purchase price... I ran comps and know very well that its not worth that. 

He wants $2400 total for both units... I would be responsible for the full $2400/month. He is currently renting both sides out for $1200/month so that is not unreasonable. And is normal for rental market in that area... I would plan on actually Airbnbing one side anyways which would bring in at minimum $1500/month in my market.

If I were to do a lease option I would do it for at or below market value purchase price... If he doesnt agree, NO DEAL! 

I'm not that desperate... 

I'm in the talk right now with a local investor to owner finance on a duplex that he owns through a lease option. 

The current value of the duplex is at about $210-220k.

His terms that he talked to me about and through out are: 

3 year lease option.

$300k purchase price (Nashville is in an appreciating market but not that much!) I think thats high based off comps.

With a down payment. (not sure the $ amount)

Rent: $2400/month. 

He bought this in 2015 for like $150k

Its a great duplex in a B neighborhood that has been taken care of, but i'm just not sure on the terms to negotiate here.

You investors that have done a lot of owner financing how would you try and structure this deal for it to work well both ways?

I'd rather do a land contract after reading on it and learning more about it...

I've just heard and read that lease options usually dont pan out... I dont want to own this in three years... I want to own it this year or now.

This guy is also a commercial and residential Loan Officer.

Concerns: 

1. I know he mortgage isnt $2400/month. theres no way... So why would I pay that? I only want to pay to cover his mortgage especially if i'm paying taxes, managing the property, and taking care of upkeep and vacancies! 

2. A lot can happen in three years... economy can take (dont think it will happen but who knows), lose job, have triplets (its in the genes), I mean fear of the unknown is a real thing.... reason I say that is that I dont want to have the option of buying that in 3 years (i'd rather 1 year) I want to own it ASAP and cash flow.

3. This is my first RE investment... I have good credit 720+ not a two year work history with 1099... and my wife hasnt been at her job for 2 years either so owner financing is the easiest way for us to get into an investment right now! We want to househack.

Okay, sorry for the long post... just so many questions and i'm all about minimizing risk... What do you guys think and why? 

Welcome Mason! Feel free to reach out anytime!

We'll chat Saturday morning!