All Forum Posts by: Matt Franklin

Thanks for all of the advice so far! Very helpful.

Yes, 100% owner financing. My goal would be to pay it off in 15-17 yrs instead of 20.

I'm almost finished with a flip where I've put roughly $15k into. There is no current mortgage on the house because it is a family member's vacant home. They let me do the updates with my own money and only want $125k once it sells. They planned to gift the excess over $125k back to me. Comps in the area for this type of updated home are about $165-$170k. It's a brick ranch with basement, built in the late 1960's. I've added a third bedroom upstairs and there's a fourth "bonus" room in the basement that is truly a bedroom, but it doesn't have windows. So I can't market it as 4 BRs. It has 1.5 baths. So I'm almost finished with this and am now thinking I may want to keep it as rental property. Many people have driven by asking if I'd consider renting. Problem is a) I want to get my money invested from the flip back out in cash, b) The family owner needs the $125k from a sell. What are my options to keep as rental and still get my investment (cash out)? Yes, I could just buy it from them, but I'd like to get my investment plus some profit out of it. What bank is going to approve that when I have $15k in debt showing currently? Plus, they will require 10-20% down, which I don't have now either. Maybe I'm just stuck and will have to sell. But it'd be nice to get the best of both worlds for both parties. I get my profit, they get their $125k, I continue to earn money through rental income. For this type of house, I could rent it for $900-1000 and net about $300 per month. Any thoughts?

The properties are 7 buildings with 4 units each. They're 35 yrs old, but have always been maintained well inside and out. Current terms are $1.5M for 20 yrs @ 4.5%. 

Rent per unit is $600. Currently, the tenants are on a month-to-month lease, which has always worked well. Anytime a tenant leaves, the unit usually is filled in less than one month. The most that's ever been vacant at one time is 2 units. 

City and county taxes are $1,300 a month total.  Current insurance is around $700 per month. So that leaves roughly $5,000 per month that can be used as maintenance, expense, miscellaneous and income.  I would like to take $1,000 a month for income and let the rest accumulate over time.

I need help exploring my first investment property deal please. I've always had an interest in real estate, but have no experience. A family member owns 28 rental units and wants to do an owner financing deal with me soon. I work full time and am early in my career so I don't want to quit my job. Obviously, I have tons of questions and don't know where to start. I know enough to know this is a good deal considering its owner financed and the banks wouldn't be involved. Total rental income is roughly $17k per month and my payment would be roughly $9500 per month. Please share your general thoughts and advice for me to consider. I am planning on taking the deal, but need to know what I should do to ensure success. Do I need LLC? Should I hire a property maintenance company? Do you recommend any property management software? Should I have the units appraised? Insurance advice? Do's and don'ts? I know this family member won't take advantage of me, but who should I be cautious of as a new young investor/landlord? I appreciate any advice or tips you can provide. Thanks!