All Forum Posts by: Penny Myers

We are owner financing the sale of one of our rental properties. We would like to require the buyer to have mortgage insurance. Any recommendations or referrals to companies that offer such a product? 

Selling a long time SFR rental with owner financing. For tax reasons, we need to push either the closing or the receipt of cash from closing into Jan 2024. The SFR is ready to sell now, but if we close and take the down payment money in 2023, we take a huge tax hit. To avoid this, we've come up with a few scenarios and need help ripping these ideas apart and pulling something better together.

1) Put it UC, buyer gets possession before closing (as a tenant) and closes Jan 2. (This makes me cringe for lots of reasons. The house was just renovated. Sick of being landlords. I see risk, risk, risk despite being scrupulous at vetting the buyer). Not thinking Lease to Own is the way to go either. 

2) Since we're financing the purchase, do kind of an 80/20 mortgage. Close now with first mortgage loan amount that is 80% of the purchase price, and a “piggyback” second mortgage for 20% of the purchase. The second mortgage would be the down payment we want, and would be due in January 2024. Still concerned that this would trigger the tax event even though the $ from the second is not received until 2024.

3) Hold out on marketing the house until late Nov and set closing for Jan 2. Seems insane and we don't like vacant houses. Unless it's someone elses ; )

Any Ideas, any experience with this? No idea too crazy coz look what we've come up with so far. 

I have a situation where my elderly tenants are being "called upon" to babysit their grandchildren pretty much daily while the mom goes to work. The lease clearly states that day care/babysitting services are not allowed on the premises. Somedays there are a DOZEN children running around disrupting the neighborhood and my very desirable tenants in a nearby unit. This has been an ongoing problem. I'm concerned that since they kids are family, I have no recourse. BTW, the grandmother of the children is NOT on the lease but their great grandmother is the lease holder.

I'm looking at several potential owner finance deals - but clearly the cash flow would be better if we could pay interest only. When does it make sense to make offers that pay the seller interest only? What kinds of term lengths, down payment, and appreciation levels should be taken into consideration? These are great houses in very good condition today, with excellent appreciation potential over the long term - but would need updated when we would sell them in 10-12 years. Thanks for any and all insights!

There are two active groups in the Wilmington area. I was a board member at Coastal Carolina REIA for years. http://www.coastalreia.org/  While their website is abysmal, the group is not! Definitely not a sales pitch-fest as one poster mentioned. Well attended and great for networking with some of the successful investors in town. 

There is also a Meet Up group led by one of ILMs busiest investors - Steve Dutton. http://www.meetup.com/Real-Estate-Investors-Wilmin...

First, excellent buy! Especially if financed as owner occupant. Once you decide to rent both units, two incomes/one mortgage! Very important in today's world of non-lending.

My partner and I are REIs in your area - and downtown is hit or miss as far as gentrifying areas. Castle St is trying but not quite making it yet. Areas to the north are really popping and will continue with the amazing riverfront development. Carolina Place is an anomaly driven by passion for the area and investors are selling with ARVs of $160+ psf because of it.  But the fact remains that you will be dealing with really old homes that require specialized expertise. When you get killer deals and can hire skilled and knowledgeable vendors, you may be on to something if you're really passionate about older homes and the hassles of bringing them up to code.  When it comes to rentals, we're passionate about good tenants and rent receipts. So we don't let passion get in the way of the Benjamins - typically. We have not had a focus on the older homes - especially for buy and hold. We stay in the post 60's era homes but we recently ventured into a 40s era bungalow. So cute! How charming! Great condition! Great deal! Bull Shizzzzzz!! It has been a pain in the arse - we as seasoned investors should have known better. But all of our investor buddies are doing it. Why can't we?? Never again. Wee'll stick with the solid, well-located brick ranch any day. 

Hi Louise,

Welcome to Wilmington! Here's the address to the county tax records.

http://etax.nhcgov.com/Search/Disclaimer.aspx?From...

You can also use a paid tax record retrieval system called CRS for building mail lists, etc.

http://crsdata.com/main/

You may also want to go to the local REIA meetings. 2nd Thursday each month at the Executive Development Center on Military Cutoff Rd. This month's topic is "Building your Dream Team" - perfect opportunity to meet lots of people in the know locally.

There's also a local Connected Investors meetup group. Just search meetup.com. Connected Investors happens to be based here in ILM - a nice advantage for us locals!

Best wishes in your investing!