All Forum Posts by: Ethan Ruttan

The one duplex that is rented out fully has the family member (Unit 9B) for $400/mo and the other unit at $1300/mo with all utilities included. With the barn at $1000 a month that is $2700 gross income currently. Expenses: 

Mortgage: 2145 (not including tax and insurance escrow which are 7120 taxes and estimated 2900 insurance)

I would be responsible for all water; which is about $220/quarter for each duplex and the barn is included in Duplex 11. The family member does reimburse their half of the water in duplex 9 

The barn electricity is connected to the 11A unit so I would have to pay for that which on average is $360

The 2 vacant units in 11 I estimate can bring in about $850 and $1000/mo.

I hope I explained that well and it makes sense. Here is a spreadsheet with the numbers if it explains it better.   https://docs.google.com/spreadsheets/d/1xAImNqArk4pMjphcXrcK...

I have an opportunity to buy a property from family in Adams, NY through seller financing. It is 5 total units; 2 duplexes and a barn that has a business operating out of it. They want $300,000 for it at 3.5% for 15 years. They also aren't requiring any down payment; so those terms make it seem like a pretty good deal. The numbers aren't currently good. Both units in the duplex that the owners were living out of are vacant. The business is only paying $1000 a month and one of the units in the occupied duplex has another family member living in it paying only $400 a month. So, as it sits I would be in the hole $1400 a month, not factoring in snow removal. One of the units needs a littler bit of work so I planned on living out of it for the summer to work on it. If I get the other vacant unit rented which is a good size 1 bedroom, 1.5 bathroom apartment I think that will bring it down to -$500 to -$600/mo. If I rent both out, instead of living there, I believe I could be about +$500 a month. I could also the raise rent on the family member slightly (+200/mo, which would still be a good deal for them) and bump up the rent for the business, because 1000 seems quite low, but I also don't want to make them leave because it may be pretty hard to find another business to operate out of there.

I already have one duplex that is cash flowing so I'm not completely new to RE investing. But, since I've never dealt with seller financing before, I didn't realize some of the upfront costs. I'm running a little low on cash and I'm going back to college starting this summer so I'm not sure how much I will be able to work. So, the upfront cost are higher than I expected, one of the units need a little bit of work, and the cash flow is starting at a negative. With it being a deal family I also don't want to have problems making the payments and hurt that relationship; even though backing out at this point would probably also upset them. How good of a deal is this, and is it worth the hassle that its going to take to get to its full potential? Also, this is a question more about personal life advice; is this opportunity worth stretching myself super thin to make it happen especially with going back to college and needing to pay for that, or should I pass this up and focus on college for now? I would greatly appreciate any advice I can get on this decision, thanks!

I have an opportunity to buy a property from family in Adams, NY through seller financing. It is 5 total units; 2 duplexes and a barn that has a business operating out of it. They want $300,000 for it at 3.5% for 15 years. They also aren't requiring any down payment; so those terms make it seem like a pretty good deal. The numbers aren't currently good. Both units in the duplex that the owners were living out of are vacant. The business is only paying $1000 a month and one of the units in the occupied duplex has another family member living in it paying only $400 a month. So, as it sits I would be in the hole $1400 a month, not factoring in snow removal. One of the units needs a littler bit of work so I planned on living out of it for the summer to work on it. If I get the other vacant unit rented which is a good size 1 bedroom, 1.5 bathroom apartment I think that will bring it down to -$500 to -$600/mo. If I rent both out, instead of living there, I believe I could be about +$500 a month. I could also the raise rent on the family member slightly (+200/mo, which would still be a good deal for them) and bump up the rent for the business, because 1000 seems quite low,  but I also don't want to make them leave because it may be pretty hard to find another business to operate out of there. 

I already have one duplex that is cash flowing so I'm not completely new to RE investing. But, since I've never dealt with seller financing before, I didn't realize some of the upfront costs. I'm running a little low on cash and I'm going back to college starting this summer so I'm not sure how much I will be able to work. So, the upfront cost are higher than I expected, one of the units need a little bit of work, and the cash flow is starting at a negative. With it being a deal family I also don't want to have problems making the payments and hurt that relationship; even though backing out at this point would probably also upset them. How good of a deal is this, and is it worth the hassle that its going to take to get to its full potential? Also, this is a question more about personal life advice; is this opportunity worth stretching myself super thin to make it happen especially with going back to college and needing to pay for that, or should I pass this up and focus on college for now? I would greatly appreciate any advice I can get on this decision, thanks!

I'm 22 and am buying my first investment property and plan on house hacking it. I work as an independent contractor as a real estate agent and welder. This will be my first house and I'm buying it with an FHA loan. I am locked in for a 5.75% interest rate (after a 1% rate buydown) and my bank at first said I only had to put 10% down. Now the bank is saying that I will have to go through manual underwriting and put about 20% down, because of how I did my write-offs for my 1099s. I had an increase in welding income but more than a 20% decrease in real estate income. I am only $1000 short in real estate income (that's the income the are going off of for the loan). At that higher down payment I'm only able to afford it if I liquidate most of my stock portfolio, and then I won't have any cash left over for the repairs that I need to do. I do have the option of co-signing which would also allow me to only put down only 5%. I am trying to avoid co-signing because so I'm not relying on my parents and I'm not sure when I will be able to refinance to get their name off of it. Is there a way that I can adjust my income to get that extra $1000, or do I need to suck up my pride and co-sign?