All Forum Posts by: Eric Tan

Tyler is spot on. Oh quicken loansssss *smh*

Hi @George Gipson III - one FHA loan at a time.
1) Refinance out of the current FHA loan into conventional... Use FHA on the duplex purchase.
2) Refi-Cashout out of the current FHA loan (if there is equity and if the numbers look right) into a conventional... Use cash to fund new FHA loan.
3) Refi-Cashout into a new FHA Loan (if there is equity and if the numbers look right)... Use cash to fund duplex conventional loan.

4) HELOC on home to fund duplex purchase.

it will just depend on the numbers.

cant use it anymore.

Info: 20 units for $1.45M Income: $17k/month : 2 x 10 unit buildings (tenant pays electric) 4 x 2bed/1bath @ $900-$950 6 x 1bed/1bath @$700-$750 4 x laundry units Cap Rate 8.3 Expenses: Property Tax $35,231.50 Water $9,450 Insurance $5,000 Scavenger $1,906 Fuel $5,954 Electric $1,247 Other $4,687

What will hold up the sale of a zoned SFH being used as a 3 unit? (with 3 electric meters, 3 gas meters etc etc)
Property is empty and is corporate owned per MLS description.

I am sure someone here has dealt with this type of property in Chicago.
Just reaching out to get in front of any set backs or hurdles. Any suggestions or Steps to follow?

Converting it back to SFH is probably be the best and legit way to go about it, then flip.
Keeping it as a multi unit and BRRRR is very tempting though.
Although the Refi part would probably bump into the same hurdles as buying it.

Originally posted by @Ken Jones:

Thanks for the reply @Brian Pulaski. He appears to want out of the house. He would like to do the rehab work if I buy because we've developed good business relationship thus far on my current flip. But either way, he needs to sell it. And I would definitely get multiple bids.

Curios as how this one went down.... Any update on this deal? 

Originally posted by @Derek Dombeck:

@Eric Tan

He would still have ownership which makes him responsible to maintain R E Taxes and insurance unless you structured a Triple Net Lease. Either way is doable. 

Here's another scenario.... If the property is owned by an entity, like an LLC, you could buy the controlling interest of the entity. By doing this, there was never a sale of the real estate. An entity stake is considered personal property and is sold at whatever value you all consider fair and reasonable.

In regards to the 80k, If that loan has good terms, I would try to keep it in play rather than pay it off.

Happy Investing

Derek Dombeck

 Thank you for taking the time to entertain my questions @Derek Dombeck I will look into the first option as the property is not under an entity.

Derek Dombeck Thank you Derek! That strategy makes a lot of sense. In that case he still takes care of the property tax right? Until I take the option. What other information would I need to consider? There is no prepayment penalty on the 80k.

Hypothetically, if a mix property (commercial main level and two apartments above) only has $80k left on a $350k loan and the property is worth $500k and the taxes are $12k/yr and the rents are $4k/mo and the owner is your father in-law and he wants to sell but worried about the income taxes and he doesn’t want to buy another property and the building needs about $50k in updating and roof and you want to help him out by taking it over with seller financing What terms would make sense for him without a huge tax consequence and basically still get some of that income from the buyer, us? #family

Found this man. Up to 3 loans to compare. https://www.bankrate.com/calculators/home-equity/compare-loans-calculator.aspx