All Forum Posts by: Spencer Rossie

Hello BP, I'm looking for some advice on the best approach to getting this property. 

Breakdown of the numbers- 

5plex 3 2bd/1ba 2 1bd/1ba (Completely renovated and turn key with appliances and w/d)

Asking $365K (I'm pretty confident I can get it for $350K, off MLS property)

Numbers based on $350K

Taxes $2700 annually (or $2200 owner occupied) 

Insurance ~$300 month 

Rent $875 2bd/2ba $675 1bd/1ba

Total $3975

(these are very conservative numbers..could be as high as $950/$750 $4350 total)

Monthly Cash Flow $1500 

(assuming zero money down and 5% for 30 years and before budgeting any expenses) 

Currently the only finance option I have been looking to use is my home equity loan, however that is only $100,000. So my question is in order to lock up this property what are my other options? I have considered going the FHA route, but the mortgage insurance and other fee's have me concerned. I may have bitten off more than I can chew, but what are my options. I am not apposed to moving into one of the units.

I'm new here and new to REI so if I have left out any numbers or completely over looked something please let me know. I look forward to learning more and hopefully getting my first deal under my belt. Thanks!!

What demographic did you target? 

I was wrong, the seller owns the property out right. 

I'm a rookie investor and have found a property that would be better suited for me if the seller was willing to owner financing. How exactly do I approach the seller on this? From what I have found the owner owes right around what he is asking on the property. Is Subject 2 something I pursue first? Or should I jump right to owner financing? What questions should I be asking the seller to help me decide the right approach? Is there any due diligence I should be doing to help find the best avenue?  

The property needs serious rehab and looks to be around 50% occupied (20 units in total). If some additional numbers would help answering a few of these questions I can post them. Thanks!

@James Wise I have had one deal under contract that didn't go through so a decent amount of my time was hung up on that deal. I don't think I'm being unrealistic, but it may be possible. The deal I had under contract was a 10 year old duplex, rent ready, for $65K, and each unit would have rented for $600. Something along those lines would be ideal. It fell through due to title issues (fannie mae deal). The property should come back on the market, but I'm not sure how long that could take. I honestly don't think I'm being that picky…it's just that the inventory in my market is very low. I'm really just looking for anything that will cash flow and there doesn't seem to be much in my budget ($100K). Rental, rehab, flip, anything...

I am a new investor having serious trouble finding any inventory in my area. My current avenues have been strictly mls/craigslist. How can I broaden my search to more off mls properties? I live in Hammond, LA and have currently only been looking in the Hammond area. Should I look to doing my own marketing? Can foreclosure or soon to foreclose list be obtained (that aren't listed w/ mls)? I have been looking for over a year now and have not closed a deal (although I have been close). My finances are all in order..I just need to find the right deal to get started. Any advice? Thanks!!