All Forum Posts by: Josh C.

awesome! Thanks for for the inspiration. 

also I'm in Indiana if that helps, really just trying to wrap my head around seller finance and what my risks are if he has a mortgage in place? I guess he can miss payments and get foreclosed on and I am SOL? Do I make his payments (I doubt he wants that as he's a much bigger fish than me)? Do we both have insurance?

Thanks again

@Jerry W. 

@Account Closed 

thanks so much for the reply guys, this place is awesome.

Sorry meat on the bones.

180k

Insurance 1100/yr

Water $100 monthly

Taxes $2500

Rents are 2000 monthly, but that is really low, $3000 is market, but I would need some updating. I also own a building right down the block so I am invested in the area. 

This being my first non cash or bank loan I have no idea. I assumed like normal I'd get title and cover my own insurance and taxes. Is this how land contracts work?

@Nii Okai undefined

I was all set to close today, but the bank waited til the 11th hour to tell me the comps were too old (2 years old) and there's no way they could take the loan. This was a small bank who is supposed to be innovative, but couldn't do it. I know some people at chase bank and they gave me the same story. The house appraised at purchase price so I'm a little confused. Either way, doesn't matter, deal is dead. So I thought. The house is great, so I called the seller directly and asked if he would sell it to me 0% down, 5% rate, 30 year schedule with a 3 year balloon. He say sure thing.

I was surprised as he is not motivated being a well to do investor and the property is fully rented, but repairs have been neglected and I'll drop 15K in the next 90 days.

Since I've had under contract for the last 45 days I've done my DD. Tenants are great and I've climbed all through that place. Very comfortable with my numbers.

Sorry for the long post. My question is how does this actually work? The gritty details. Can he give me a land contract if he has an outstanding mortage? (my realtor says he did have one of 140k) What are my risks?

Thanks in advance.

What's your goal? Are you wanting to sell them and take a loss to offset other income? The property taxes won't change regardless so it won't help that. Need more info. I'm not an accountant, but a personal loss or LLC loss should be treated the same.

No rule saying you can't take a toe in the water check for a while to feel out the market before your massive assault of the marketplace and post office. :)

5% down for non owner occ? Are you sure you can get that? Oops just reread your post, you do want to live there. Phone app still has some bugs. And yes, almost everyone wants more. I mean the site is called bigger pockets not dealing with tenant problems as a hobby pockets. :)

5% down for non owner occ? Are you sure you can get that? And yes, almost everyone wants more. I mean the site is called bigger pockets not dealing with tenant problems as a hobby pockets. :)

if you can lease option or wrap it with the new guy putting in the work it be an awesome deal. Everybody is different, but I wouldn't put in an extra 15K with no equity just to hopefully make a couple hundred bucks a month.

Wrap as a handy man special with 10k down would be my go to exit plan.

Good luck!

My lender told me, I haven't verified, but I was under the impression the 250k exemption was prorated. So if you only lived there 12 months, you could still keep tax free 125K. Has anyone else heard that before? Only what I've heard, but would like to know if that's wrong or not. Thanks