All Forum Posts by: Sam Horton

I am currently working on structuring a deal for a 3 unit in Boston. The current owner has 100% equity in the property. The owner loves the cash flow but does not fancy being a landlord. I want to approach the owner and inquire about seller financing. Since this would offer the owner cashflow without the headache of being a landlord. 

In my opinion, the MF is renting $200-300 under market value in this particular neighborhood. The owner verbally said they net $2800 per month, so I believe this to be the sweet spot for her cashflow. Values in this neighborhood since 2015 have gone from $215/sqft up to $295/sqft now and there is still a lot of growth to come in my opinion.

If I am looking to hold this property for a long time. Should I structure the financing with (A) below fair market value sale price with a higher interest rate or (B) go above fair market value sale price with a lower interest rate? Any tips/tricks that you might have picked up on when going through seller financing would be greatly appreciated as well.  

MLS, Remine, property managers, and I have a friend that works at AMC that runs numbers for me as well.

I agree with both @Jacob Sampson and @Charles Carillo. The biggest concern for me would be the status of the tenants. It sounds like the previous landlord did not take care of them so I would imagine things could get worse for you if you take them on. All of these issues are fixable it's just about figuring out at what cost and does that cost fit into your budget for the deal. 

Depends on what you're looking to do within Real Estate. Is that equity enough to refinance your position and create more liquid cash for you to go purchase another rehab and buy and hold?

In my opinion, it depends on the appraiser and the appraisal management company you work with. My first question is always how many appraisals they have done in the town/city in which I need the appraisal and how recently. I have had some appraisers come from over an hour away and really lacked market knowledge for my market. 

@Nathan Boyer I'm interested in this as well. Attempting to buy a 3 unit with seller financing. This individual likes the cash flow but doesn't like being the landlord. My pitch is going to be offering that cash flow through seller financing and taking over the management through the purchase.   

@Olivia Lowe Did you receive copies of the master deed and rules and regulations from your realtor? If there is a parking spot deeded to your unit then you should have access to that spot legally. If there is no deeded rights in the deed then at that point it would fall upon the HOA management.

Regarding the hot water heaters that should have been found by the home inspection, assuming you had one.

What @Mike Dymski said and a real estate attorney would likely be in your best interest if you don't have much experience in contracts yet.

@Jacob G. I personally have not used this but a lot of my landlord clients like Zumper. They give you credit score, criminal and eviction, free up to 25 listings. You can take the application through the app and any additional documentation. It also acts as a listing service for the consumer as well. 

@Stephen Stokes Might be MLS member only. I first gained access through my MLS then upgraded to their premium service. If you use a Realtor, see if they have access to the app and can give you a code. Mine would be Massachusetts specific.