All Forum Posts by: Jose Botello
Jose Botello has started 14 posts and replied 29 times.
Post: Possible 8 unit deal, help!
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
Quote from @Jaycee Greene:
Quote from @Jose Botello:
Quote from @Jaycee Greene:
Quote from @Jose Botello:
Quote from @Deon White:
@Jose Botello Based on quick math the 8 units just barely beat the 1% rule. Seller financing is a great strategy to close with less down with rates so high, we almost always ask for some portion of a note.
I would suggest framing it to the seller as asking them to carry the down payment. In my experience they are often more receptive to this phrasing. If you want to talk about partnership with capital partners for the remaining raise feel free to reach out sometime. Good luck.
As current rents stand, yes this barely beats the 1% rule. if we were to buy this, we would increase rent to market value which would be around $800-$900, which would put us closer to 1.2-1.4%.
When i mentioned seller finance to the owners, the wife was very quick to say no and that she just wanted to "not have to deal with the units anymore" the husband had a different reaction and i could tell he was thinking about it but didnt say much else. they have 2 years left to pay on it and will be listing sometime next year.
our other approach would be to find out how these units would be appraised and decide if HML could be an option. with just quick napkin math, i dont see this as a good option but i also have never dealt with any of this.
Hey @Jose Botello Sounds like this property is in South City, is that right?
im not sure why it shows STL, this property is in Southern Illinois
@Jose Botello "Southern Illinois" meaning, Metro East or Carbondale?
Just a bit east of Carbondale in Marion.
Post: Possible 8 unit deal, help!
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
Quote from @Jaycee Greene:
Quote from @Jose Botello:
Quote from @Deon White:
@Jose Botello Based on quick math the 8 units just barely beat the 1% rule. Seller financing is a great strategy to close with less down with rates so high, we almost always ask for some portion of a note.
I would suggest framing it to the seller as asking them to carry the down payment. In my experience they are often more receptive to this phrasing. If you want to talk about partnership with capital partners for the remaining raise feel free to reach out sometime. Good luck.
As current rents stand, yes this barely beats the 1% rule. if we were to buy this, we would increase rent to market value which would be around $800-$900, which would put us closer to 1.2-1.4%.
When i mentioned seller finance to the owners, the wife was very quick to say no and that she just wanted to "not have to deal with the units anymore" the husband had a different reaction and i could tell he was thinking about it but didnt say much else. they have 2 years left to pay on it and will be listing sometime next year.
our other approach would be to find out how these units would be appraised and decide if HML could be an option. with just quick napkin math, i dont see this as a good option but i also have never dealt with any of this.
Hey @Jose Botello Sounds like this property is in South City, is that right?
im not sure why it shows STL, this property is in Southern Illinois
Post: Possible 8 unit deal, help!
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
Quote from @Deon White:
@Jose Botello Based on quick math the 8 units just barely beat the 1% rule. Seller financing is a great strategy to close with less down with rates so high, we almost always ask for some portion of a note.
I would suggest framing it to the seller as asking them to carry the down payment. In my experience they are often more receptive to this phrasing. If you want to talk about partnership with capital partners for the remaining raise feel free to reach out sometime. Good luck.
As current rents stand, yes this barely beats the 1% rule. if we were to buy this, we would increase rent to market value which would be around $800-$900, which would put us closer to 1.2-1.4%.
When i mentioned seller finance to the owners, the wife was very quick to say no and that she just wanted to "not have to deal with the units anymore" the husband had a different reaction and i could tell he was thinking about it but didnt say much else. they have 2 years left to pay on it and will be listing sometime next year.
our other approach would be to find out how these units would be appraised and decide if HML could be an option. with just quick napkin math, i dont see this as a good option but i also have never dealt with any of this.
Post: Possible 8 unit deal, help!
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
An opportunity of purchasing 2 4-unit apartment buildings has presented itself.
Currently being rented at $630-$650 per unit ( low for the area) all 2/1.
The current owners have had this for 17 years but are getting too old to keep up with it and are asking $500k for it.
What are some things I should ask and also how do I introduce the idea of seller finance?
Post: Seeking Current Promo Code for Pro Membership
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
i am ready to go pro as well, could you share the code please
Post: Looking for some advice on a deal.
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
thank you all for the great information. the only way the owner will sell at this price is if i do it with the partner, my partner and the owner are related. the current owner has been a maintenance guy at a local business so he has maintained this house pretty good given its age. the house is located in a very small town next to the police department, which is located in i would say B class area. He wants to sell just because he is getting old and wants to not have to worry about the house, he doesnt need the money.
Post: Looking at 1at deal with a partner
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
Ryan, thank you for the insightful information. there is a lot to learn and we're just trying yo make sure we set ourselves up for success
Post: Looking at 1at deal with a partner
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
Looking at purchasing a first investment property. This would be with partner, both of us 1st time investors.
Do we need an LLC to purchase the property?
What kind of loan should I be looking at commercial? Residential?
Insurance? What type and how much?
Post: Looking for some advice on a deal.
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
A partner and i currently have the opportunity of purchasing a 4 bed 2.5 bath house with existing tenants. the seller is a close family friend that has had the house for about 14 years, he has had the same tenants in the house the whole time. He says they have only ever called him maybe a handful of times in those 14 years. it is an elderly couple in their 70's they always pay rent on time and don't mind that the house is outdated.
the house was purchased at $31K when the owner bought it. he is wanting to sell for $39K. house has 7yr old roof, 2 yr old furnace, PEX upgrade through whole house and painted the outside about 5 years ago. He also mentioned the house was appraised a few years back for $80K.
it is currently is rented for $550. at a purchase price of $39K i feel like its a decent deal considering the market.
am i missing something i should be on the look out for?
how do i go about for insuring the place if we do buy?
any other advice is appreciated as this would be our 1st deal!
thanks in advance!
Post: Repairs and upgrades to one side of a duplex
- New to Real Estate
- Southeast Missouri
- Posts 29
- Votes 19
Thank you guys for the advice! I may move forward with it and buy my 1st investment/house back property!