All Forum Posts by: Corey Diethorn

Hi There!

Thanks for coming to check out my profile.  I am an active agent and investor in the Pittsburgh Market.  I started my career in 2012 after retiring from European Professional Basketball.  Since then I have sold over 50 properties as an agent/sub-agent as well as renovated 8 properties and am on track to bring my 5th rental online by the end of the year. 

I also specialize in REO/Foreclosure sales, as I manage two accounts. I know the ins and the outs of the REO and am able to help assist on the purchase of those properties.

The owner is out of state with full equity in the house. He is tired of driving 5 or 6 hours every time something goes wrong at the property.

He is asking for $37,000 - so essential my offer is for that amount, $5,000 down (i pay closing costs) he is financing $32,000. It would be $12,000 over the course of 5 years, then the balloon for the remaining $20,000 at which point I would either re-fi or sell the property.

Hi BP Forum,

I am thinking of making an offer on my first owner finance rental.

Terms:

Long term tenant 6 plus years

Rent $700

Transitioning neighborhood, brand new beautiful new construction 180 units subsidized housing across the street.

Asking 37,000

Offer

5k cash

200$ month on a five year payment schedule ($12,000 over course of loan) - balloon due at end of 5 years. Total amount due is $20,000

Through my calculations

Expenses:

$125 a month property tax

$75 a month insurance

-----

Variable/Sink Fund costs

$189 - prop mangment, rainy day fund, vacancie

Total Expenses

$389

$200 payment

= $589

----

Cash flow = $111

I should be able to bump rents by $25-50 a month immediately.

I will need to do about 1,500 in repairs to the sofit/fascia

Thoughts