All Forum Posts by: Stephen W Sparks

The alternative is that she won't sell. The property is off market. I approached her about selling it to me. I'm trying to not lose a good opportunity. 

Thank you I will look into those options!

I recently purchased a duplex with owner financing and the seller has 6 units (a quad and duplex) a few blocks away that she is considering selling me with a similar deal. The problem is that 3 of the tenants are elderly and on fixed incomes and the seller is concerned that they will need to move out when I take over and increase the rent. The current rent is well below the market avg and the property will have a CoC of about 15% with a conservative cashflow of approx $950 a month. They are currently paying 450-500 a month and I plan to increase it to $750/month. The seller is reluctant to sell if they have to move due to and increase. I'm looking for a creative way to work the deal so she will agree to sell. I am not opposed to traditional financing but I will most likely have the same problem. I would prefer owner financing for obvious reasons. Any help is appreciated.

Steve

I recently purchased a duplex with owner financing and the seller has 6 units (a quad and duplex) a few blocks away that she is considering selling me with a similar deal. The problem is that 3 of the tenants are elderly and on fixed incomes and the seller is concerned that they will need to move out when I take over and increase the rent. The current rent is well below the market avg and the property will have a CoC of about 15% with a conservative cashflow of approx $950 a month. They are currently paying 450-500 a month and I plan to increase it to $750/month. The seller is reluctant to sell if they have to move due to and increase. I'm looking for a creative way to work the deal so she will agree to sell. I am not opposed to traditional financing but I will most likely have the same problem. I would prefer owner financing for obvious reasons. Any help is appreciated.

Steve
 

Investment Info:

Small multi-family (2-4 units) note investment investment.

Purchase price: $145,000
Cash invested: $29,000

Pier and Beam Duplex built in 1950 with brick veneer. 2br 1bath on each side.

What made you interested in investing in this type of deal?

Seller was offering owner financing.

How did you find this deal and how did you negotiate it?

MLS. through a buyers agent. Seller was originally asking $179,900 and offered owner financing

How did you finance this deal?

Owner Financing

How did you add value to the deal?

Negotiated down from $179,900 for 15 yrs @ 6% to $145,000 for 20 yrs with 20% down.

Lessons learned? Challenges?

Let the option period expire without asking for repairs from the seller. My agent didn't guide me through the process as well as I think she should have as a first time buyer/invester.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No.

Investment Info:

Small multi-family (2-4 units) note investment investment.

Purchase price: $145,000
Cash invested: $29,000

What made you interested in investing in this type of deal?

Seller was offering owner financing.

How did you find this deal and how did you negotiate it?

MLS. through a buyers agent. Seller was originally asking $179,900 and offered owner financing

How did you finance this deal?

Owner Financing

How did you add value to the deal?

Negotiated down from $179,900 for 15 yrs @ 6% to $145,000 for 20 yrs with 20% down.

Lessons learned? Challenges?

Let the option period expire without asking for repairs from the seller. My agent didn't guide me through the process as well as I think she should have as a first time buyer/invester.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No.