All Forum Posts by: Marc Rice

@Mark Lee

If you’re managing it for yourself and not giving the owner any profit then you shouldn’t need...

@Jeff Dong OH-

I'd triple check that your lender is 100% able to go after you sell the property, there's no way to unsell it. I'd get other lenders second opinions also.

Did you budget for capital gains tax if you're not going to do a 1031 exchange? If you're looking to do a 1031 you should start looking asap as you'll only have 45 days from your sale to identify a new one.

Columbus, OHIO! Cap rates 8%+ in decent neighborhoods, increasing population/job growth, etc.

Just price it in accordingly to your purchase price. Ultimately you're solving problems in real estate and if the difference of market rent to his rent is XYZ$, then decrease that from the purchase price. I would agree with above to budget for an eviction, usually $500 for legal fees not accounting for lost rent.

Macbook, read Steve Jobs biography and you'll understand

@Jocelyn Doumani

Collect royalties...or just enforce your lease that if he breaks the law you can evict.

@Jennifer Horowitz

You can only buy a single family with FHA when relying on a co-signer for income.

Traditionally most seller financing only involves a short period of 3-7yrs of seller financing at white point a balloon payment would occur which forces the buyer to refinance before the balloon is due, essentially guaranteeing the seller wont be stuck holding a mortgage for 30yrs. 

In your example, it sounds like the family member trusts you will get it refinanced in a reasonable time so they are not putting a balloon payment in the timeline. Thats GREAT! Those terms are fantastic too as most Fannie 30yr fixeds are about 4% interest rate with less than 20% down. I would feel comfortable going forward with the owner financing terms if the purchase price is also fair.

As always, I'd recommend a lawyer to review the terms/contract because I am not a lawyer and either are you. Good luck!

I think that was a great solution. It bought you time, saved you the headache of having to deal with an eviction, and kept everyone happy. Best thing is communication to solve problems with tenants.