All Forum Posts by: Jonathan Olcott

@Janelle K. Eagle and Owen thank you for your replies. Heres an update. The owner is a little..  well all over the place. Last night he took owner carry off the table and agreed to a 1M purchase price if I can secure financing. I'm not sure where to start as he doesnt want a broker involved. The house has been cobbled together over the years, it has had 4 additions to the original home. 

@Owen Schwaegerle I attend the investor meetings you and ben host.

Hello all, thank you for your replies! I have some updated information

He is listed on the lease so he has access to the property without need for notice to the tenants. After discussing with the seller in more detail this evening I have learned the following. 

The seller is in good standing on the property and owes $330,000.

He wants to get at least the same amount of cashflow on the property as he is currently receiving in the form of a mortgage payment his current rent roll is $6000 per month and can easily be $7500 if the primary bedroom was rented out.

He is willing to pay off his loan so I can have a simplified owner finance deal. 

He feels that 1.2M is market value for his property and wants 6.5% interest 

It is possible to value add by way of adding an ADU with in the current footprint.

I hope this all makes sense. 

What do you all think about this? 

I found an off market deal yesterday. While attending an open house yesterday a neighbor and I began chatting and it turns out he wants to sell! He is house hacking a 2500 sqft 6 bed 3 bath with current rents at $6000 and the owner occupies one of the rooms. I see a path to increasing those rents considerably to $7500 by renting out the Primary room. Additional rent could come by converting two rooms of the home to ADU's I believe in that sinaro I could achieve $10000 in rents. I live in a very strong rental market with lots of demand and this home is within .5 miles to Cal Poly San Luis Obispo.

  The Seller has a mortgage on this property $880,000 

The Owner says he could carry The whole purchase. How could this work if he has a loan on the property? 

His terms would be a purchase price of 1m, 7% down, 5% interest: My payment would be $5990. 

It would be most Ideal for me to not come out of pocket on this deal as I will need money to do value adds. 

Thank you all for your help in advance... This my first BP post...

Jonathan