All Forum Posts by: Joe Schaak

Okay, real estate gurus. I have an owner of a 3/1 down and 2/1 up duplex (he lives in it) that wants to move down to Florida. He's asking $220k and arrived at that number this way : $110k current mortgage, $100k down on FL home, and $10k moving expenses. Monthly rental income would be $2150. 

As a straight cash purchase, it doesn't work. Is there any creative way to approach this that may help? Looking for ideas or just straight "no's"

Thanks!

@J Scott @Valerie Hiscoe Thanks for the tips. I was inquiring about General Contractors. Sorry for the typo. J., great info and very helpful. And, Valerie, sorry for that experience and thanks for the forewarning

I'm looking for opinions on using a General Contractor vs a Property Mgr managing a team of subs. I have a fairly large rehab with roof, windows, kitchen, bath, and opening walls. Looking forward to your great thoughts!

Thanks, @Michael Hayworth. Yes, I agree that the $135k option is best for me. I do have a relationship with a portfolio lender. And, you're right, I would do the $135k with a loan off the bat. 

The options are really for the seller. I expect that A and B are the ones that will be considered seriously because C doesn't allow him to pay off his current mortgage.

I'm speaking with a gentleman that owns a 3down/2up duplex with current rental income of $2500/month (he lives in the lower unit so rent rate is based on comps). He owes $110k on the property and his present payment is around $1000. The present value is $180k. He wants to retire to Florida and walk away from this property. He also said he would be willing to carry a $100k mortgage on his new Florida home which he thought would cost about $130k. 

I would like to be able to help him work this out. I would like to present 3 scenarios and would love input on them.

A.) $135k cash purchase with closing on his schedule.

B.) $150k purchase structured as $115k cash and $35k seller financing (monthly payments of $291.66 for 10 years).

C.) $180k purchase seller financed as 164 payments of $1097.56.

Thanks in advance for your insights and feedback ~ JS

@Wayne Brooks @Jay Hinrichs @Charlie Fitzgerald All great comments and extremely helpful. I had asked for his guarantee to be tied to his personal residence. If that doesn't work, perhaps I should ask him to put in a some percentage, maybe 10-15%. What are your thoughts on that?

Hoping to get some feedback about a potential lending opportunity:

$130k used as downpayment and rehab funds

4pts and 15% interest only for 8 months

2nd lien position with signed personal guarantee

30% of profit on sale of the property - roughly $30k

The rehabber has done 20+ projects and has a good reputation. He's a good guy and I believe in his ability. That said, you never know what can happen. 

Thoughts?

Perfect! Thanks for the link, @Brandon Turner!

I'm not looking for a loan. I just want to check the way that I'm using the Rental Calculator here on the BP site. Is there a manual or video that explains how to use it? I'm concerned that I'm not entering my data correctly and that I'm not getting accurate results.

The Rental Calculator looks like a great tool but I don't think that I'm using it correctly. How do I input the numbers if I'm using a 6-month bank rehab loan at 5% with 1 point for 75% of purchase + rehab costs? Lets assume purchase is $75k and rehab is $25k. Help me, please!