All Forum Posts by: James Archuleta

@Dennis M. If it's were rent alone, it might be a crappy deal. but I'm thinking I'd lease-option to sell it or sell it outright.What do you think of that?   

@Kase Knochenhauer I'm not sure what the terminology is but the Subject to seems like what I'm trying to do. I just want to make sure that I'm not shooting my self in the foot and that I will be able to refinance later to pay off the house or potentially cash out the difference. Sounds like you're saying that I can. 

@Charles Carillo They will still be making payments to their mortgage, I will be making payments to the seller. They are not paying off the mortgage. 

I found a house for 117k owner is willing to do owner financing at 800/mo with a 5 year call. With a down payment of 14k. She owes 103k on her mortgage but wanted 117k so that's how I came up with the 14k down payment. I want the house as a rental. The current tenant will pay 1150/mo. it's in disrepair and needs about 5k in work. The ARV is about 170k. I'm trying to brrrr.

1. If I do owner financing now, can I get a mortgage in the future to cover the remaining balance of the loan? Or would it be better to try and get a mortgage first. 

2. is this how you brrr?  

I found a house that's worth 150k to 175k. The owner is willing to sell it for 122k. It needs about 5k in work. The market rent on it is about $1050.  so at 127k, my mortgage would something like $911. That's barely cashflow positive. If I put a downpayment of say 30k on a mortgage, then it cash flows better. But then I'd have to leave 30k as equity in the deal and I can't use that on the next project. Isn't the point of brrrr to recoup the money you spend fixing it? or is this just a bad deal?