All Forum Posts by: Owen Dashner

As others have mentioned, college is not just about the degree and student loans. College is a life experience that you will likely never regret. You will meet people and form relationships that you will have for the rest of your life.

My advice would be not to be in such a rush to grow up. Believe me, when the responsibilities and liabilities you have start piling up later in life, you will at some point look back on your college days as one of the best times of your life.

Or maybe that's just me... ;)

On paper, it is a good deal. Assuming $50K purchase, 5% interest, 30 yr amort. period, your P&I payment is $268/mo. That's if you are able to get those financing terms, obviously.

50% rule says that your expenses are going to run around $600/mo. Let's tack on an extra $200 and call it $800/mo. You are still left with $132/mo cashflow. In general, $100/door of true cashflow is a good deal. You've got yourself a pretty good deal, I'd say.

What you have to really consider is that someone else's pain in the *** might become your pain in the ***. You are going to have high turnover and higher repair costs in general with college rentals. Mix in the occasional call from neighbors and/or the police because of partying at 2 AM, and you have to ask yourself if $132/mo is worth the hassle.

Just my opinion, but I wouldn't waste any more time with it. Distressed properties with owners who are upside down are a dime a dozen. Odds are you would have a hard time getting someone to pay you for this type of a lead.

Edit in my above post- should say, "equal or greater value".

Mandeep, there are 2 ways to avoid/delay capital gains on the sale.

1. Has the subject property been used as your primary residence for at least 2 years of the last 5? If so, as a single person, you would owe no taxes on profits up to $250k. If not, see #2 below.

2. If the subject property has NOT been used as a primary residence for 2 of the last 5, then your only option for avoiding immediate capital gains taxes is to do a 1031 exchange. This means sell the subject property and roll the profits into another property of equal or lesser value. It should be noted that this is delaying taxation, not eliminating it. 1031 exchanges have a lot of nuances that you need to read up on. There are time limits, qualifying properties, intermediaries, etc. Definitely requires more research on your part if this is the direction you pursue.

Good luck!

Ben, the rate I got was 4.5% fixed, 30 year amortization, with a 5 year balloon.

As Kyle J. mentioned, this type of financing is not typical - but it is definitely possible. I have done 2 of these deals recently on cheap (<$50K) single family homes with a small town bank. The key is developing relationships with the decision makers at small banks (think President) and credit unions where they have an appetite for loaning on the type of deals you have, and keep their loans in-house instead of selling on the secondary market. I have a good reputation at the bank that did these loans for me, and they view low-priced SFR rentals as a low-risk investment.

Your best bet is to hit the phones and call around to these lenders in the same geography you are investing in to see if they want to play ball with you.

Good luck!

The second quote isn't terrible- they typically will go off of replacement cost of a percentage thereof, not purchase price. They will also take into consideration what part of town the property is in. If it's in North O, you are going to pay more than one in Papillion. Check with Jeff Chisham State Farm, also check with Foremost for quotes.

Good luck,
Owen

Just use the straightforward approach and don't play games. Ask them, "I am looking to purchase a multi-family property with seller financing. Is this something you would consider?".

Simple, and gets right to the point. It's a numbers game- you'll have to ask lots of sellers that question before you get to "yes". Then you just comb through the list of willing sellers to find the properties you are interested in and make some offers.

Let's recap: You are willingly living in mold and feces/filth, are knowingly committing borderline fraud and are trying to screw over a real estate investor who has gone above and beyond to help you.

If any or all of the above is true, then you need help that you are not going to find on a real estate investing forum. So I would recommend you quit wasting time with posts here and instead seek out mental health therapy and a decent lawyer.