All Forum Posts by: Olivia Taitt

Thank you all!

@Andrew Werner, any insight how taxes/insurance would be handled with that? I'm assuming I'd continue paying mine, and the buyer would have his own insurance policy naming me?

Hi Everyone,

Looking for advice - pls  on a potential SubTo deal where I would be the seller (think slow flip). Here is the background:

I have a 4 unit multifamily in the city that I am considering selling for the following reasons:

-Gut renovated 2 units; other 2 units have long term tenants and those units need gutted (old electrical and plumbing constantly giving me issues) + big ticket items coming due (furnaces, deck rebuilds). I don't have cash on hand to gut those 2 units.

-I moved away from the city so it's harder to manage (I self manage).

I have a 2.875% interest rate on it . P&I payment on it is $900, PITI is $1400/month, and rental income is $3300/month. It's worth $275-$300k and I owe $165k

I feel stuck because the interest rate is so great, but the headaches from the 2 non-renovated units are nonstop. Refinancing to pull money out would shoooooot up monthly payment; combined with the maintenance and utilities I pay, I would hardly cashflow.

SO - I have an offer from someone I know to buy it seller financed (subTo). Could I make this a slow flip/rent-to-own deal? THOUGHTS!?  I feel like there has to be a way to continue making money on this deal without just classically selling it.

What would you do?

Additional Info:

-Units are 900 sq ft and older units would need bathrooms gutted, plater removed throughout for new electrical + plumbing. I can reuse kitchen. Building needs new furnaces + 2 new decks (5x8') as well.

@Salvatore Lentini

Thanks for this post!! Do you have any experience with writing “subject-to” contracts? If so, advice on how to make the process as favorable for the investor as possible?

For those of you who find/buy off market deals - any tips on what does/doesn't work when you contact the owner asking them to sell? I typically send letters but wondering what has been successful for others. Thanks!