All Forum Posts by: Robert Finn

In San Antonio, we are seeing a few homes and townhomes right under 200k, turn key with rents right around 1600-2000 for long term. Short and Midterm could potentially be higher, depending on how active you are in the investment strategy. 

Welcome to BP! It's a great community to meet other like minded investors and pursuing similar goals! Best of luck in your venture, looking forward to hearing about your successes.

@Natasha Pollock A low downpayment does provide a challenge when pitching a seller finance deal. There needs to be an incentive for the seller to consider this type of structure. You could propose a higher interest rate and a shorter term, but it will all come down to what the seller needs currently. I'd have my finances all in order to where you know how much you can afford to pay monthly, how much of a downpayment is you can swing, and what your exit in the short term is. As far as realtor fees, it all comes down to what is included in your purchase agreement. Most likely there wouldn't be any commissions in this particular scenario unless either party agreed to pay some sort of fee, morally though the agent is a fiduciary and should inform their client of any and all potential offers.

@Caleb Brown Thank you for sharing your experience and best practice! You've provided a lot of great insight! I'm going to give it a try in my market.

Factoring timelines and renovation budgets. Give yourself room on both and interview, as things tend to not always go according to plan. Interview lenders and shop around, leverage your w2! 

@Guillermo Rozenblat If you are also going to owner occupy the property, the financing terms are much more buyer friendly. The shift in Austin has been substantial and seller's are having more conversations and negotiations. Of course you will need to assess your own financial situation, but there have massive amounts of price drops in last two months and counting. Newer listing agents are trying to figure out how to navigate in this new market, while buyers are finally now able to get creative and make deals work. 

Solid advice from Logan and Nathan. 

Your exit will also play a part in the seller finance deal. Depending on their situation, most likely the seller will want the loan amount paid back quicker than traditional financing terms. For example, a 5 year balloon may be appealing to them and gives you time to work on an exit (sell, refinance). The deal has to work for them and of course make sense for you. Larger down payments are also appealing as they may need cash right away for their own reasons.

@Parker Shoaf Still pretty competitive in that price range with right under a month of inventory. Days on market have up-ticked and will continue, so that will open more doors for negotiation. I've helped a few of my clients with negotiating seller closing credits for a rate buy down or closing costs. 

Depends on budget, timeline, and investing strategy. STR's near the theme parks and military bases tend to do well, especially with pools. Fix and Flips closer to downtown and long term rentals in based on school district. All will include capital for repairs, updates, furnishing costs, etc. This will absolutely need to be factored in your analysis and ensuring the deal makes sense.

Seller financing may also be an option. If the Seller owns the property outright they may entertain an offer with a large downpayment, competitive rate, and short term.