All Forum Posts by: Austin Shandley

Looking for advice on owner finance deal from a family member off market.

3 bed 1 bath house with garage. Class B- neighborhood in the midwest. Rent would be around $800-900.

95k buying price. 5k down payment with a 6% interest rate over 18 years.

My question is, does the higher interest rate and lower/if any cash flow make up for the owner finance and only having to put down such a low amount instead of 20%.

I have other rentals that cash flow just fine and a full time job in which I make decent money. Will increasing number of doors owned be better down the road or is this just a bad deal all around.

Thanks for the advice!

I currently have a rental property I am wanting to refinance out of a variable 6.25% interest rate. Just got off the phone with my regular lender and was told this was not possible because it is in my LLC.

Has anyone had this issue and how did you get around it?

My wife and I lived in our first house for 3 years, renovated the house and sold for a nice profit. We moved into a nicer house 3/2 with an unfinished basement. We finished the basement adding another bedroom, full bathroom and living space.

My question is, am I crazy for wanting to sell and keep doing live in rehabs over a 2 year period to keep from paying capital gains.

My thought was to move into a less expensive house rehab, save money and then hopefully have enough money to buy our dream home when the market turns to a buyers market. Or is this wishful thinking trying to time the market?

@Brandon King for sure!

@Brandon King I’m not! But I would love to be. Can you send me a group invite?

Bought a C class house from a family member unloading a rental in Saint Joseph, MO. Cleaned it up and rented it for a year. After a year, took the cash flow my wife and I made to upgrade the house. Listed and sold for a 20k profit. Now we are wanting to buy something nicer to keep as a long term rental. We are having a hard time finding any deals that make sense as far as cash flow/appreciation/Location.

Is anyone just sitting on cash and waiting for the market to cool off?

Should we look for another flip in the meantime or just be patient until winter, best time to buy.

@Shawn Jackson

They are wanting to owner finance instead of selling out right to do installments instead of paying a lump sum for tax reasons.

I’m really just trying to assess the risk and what others would do in this situation. But you’re right, more money down and decreasing the interest rate is about the only way to increase my cash flow and safety in this situation.

@Daniel Dietz

Thanks for your input! I did not consider a balloon but that is something I will pitch to them. The sellers are in their 70’s so they are just unloading property but want the installments for taxes instead of lump sum. They said 15 years was the longest term they’d be interested in. I am going to do some fiddling with the balloon idea to see if they’d go for it to lower the payments some.

My wife and I have been debating on a seller finance deal offered to us by a family member for a rental house.

3 bedroom 1 bath house recently renovated in B-C class neighborhood. New HVAC, carpet, kitchen and bathroom.

Offer- $75,000 on a 15 year fixed rate of 5%. With property taxes $600/ year and insurance $600/ year.

Dilemma- the payment for the deal puts us at around $690/month. The house rents for 700-750/month. We do have 3 other rental houses that net us $750 profit a month but with such a slim margin of clearing the mortgage we are questioning the deal. Other option is to put $5,000 down and decrease the mortgage to $650/month.

We would hate to pass up an owner financed deal but we would also hate to be paying so much a month if it is unrented for a period of time.

Thoughts?

What spreadsheet layout do you use to keep track of expenses/income.

I currently have 3 rental properties and have had more expenses this year (furnace, A/C, tentant turnover, refrigerator etc). I want to stay organized to track my income vs expenses to make it easy come tax time. I currently save and take pictures of receipts to upload and use excel.

Does anyone have examples or suggestions for keeping organized.

Thanks in advance for the info.