All Forum Posts by: Dee Xixi

The property need some rehabs, I am thinking on presenting one of those options to the seller. Any suggestion??? [please

Here are two scenarios that I came up with as our starting point.

Seller financing ( if owned the home outright) or assumption of current mortgage with seller carrying a second mortgage (if home is still owned by the bank):

Purchase: 320k
Down payment: 10,000 non refundable
Lenght: 5 years
Interest: 7% on second or first
Buyer: Paid tax-Insurance
Background check and a copy of credit report

Lease to own

Purchase price: 310k
Down payment: 10,000 non refundable toward the lease
Non assignable
Rent per month : $2100 base on current condition of the house.
Tax and insurance pay by buyer

In my town, I found a duplex that needs a good amount of rehab. I talked to the seller about a lease to own which he accepts but I am a little bit unsure on how to structure the Lease to own so that if I cant pick up the option I am able to recoup my rehab money. I am thinking on doing the rehab gradually, one side has tenant and the other side is vacant. starts the rehab on the vacant side then move the occupied side afterward. Any ideas on how to structure the deal please.

check out those sites:
http://www.acwholesalers.com/Goodman_Gas_Furnaces_variable_Speed_95_Efficiency_s/73.htm
http://www.alpinehomeair.com/

Tim, the price varies. Truly depends on the system and brand, btu and efficiency. Heat pump are a bit cheaper but if you live in a rough winter area it might not be the best idea because they are made for moderate winter. Can you do a gas furnace with ductwork and get an air cooling.

Many thanks to those who put their lives on the line for our freedom

Jon, thanks for the break down. The issue is I don't have $233,750.00 in cash. I was thinking payoff the realtor commission and the seller profit upfront which I think might be in 50k range and buy the 4plex with existing financing. But I will be stuck with no cash for rehab. Jon don't you think 335k is still to high though??? At 335k I have lil room for error.

I can only rent unit 5 for 1500. besides that everythin long term

Trere was a fired on the 2nd fl. Comple rehab. Water damage, missing heatiing system,bad pipes and replacement water pumps, elec

I received a call from a realtor for a 4 units home that he has for sale. Yet to put it on mls. Asking price is 350k but the seller cant take no lower that 335k. I went to see the home with my contractor. We estimate rehab work will be between 120-150k. Assuming I buy the home for 335k and I do rehab for 150k that i s about 485k, which represents 85-90% market value. Keep in mind I will add an extra unit to make it a 5 unit which in return will be75% market value.
unit 1: 1100- unit 2 & 3: 850 ea - unit 4: 1200 and unit 5: 1350= 5350.
vacation rate: 6%
tax: 5700
insurance: 3600
The seller owe a HML on the home for 245k and i am guessing another 35k for realtor, points and closing cost which the owner realisticall owes roughly 280k.

Please help me structure creatively a wrap around or the financing. how much is right to offer the property. The pros and the cons on taking this project. Projected cash needed. or can I make the owner partner up with me.

my plan is to refinance and hold for at least 5 yrs.

Thanks

Hi Guys, I am not from Michigan but I am very interested on investing in the Atlanta market. I would love to network with the investors on the ground.I am trying to familiar with the areas and seeking some good multi families deals.