All Forum Posts by: Taylor Harrison

This is all in the infant stages and I have "0" experience with seller financing. For discussion purposes let's say the asking price is $65,000. I would like to put 5% down.  And over 5 years build equity to 25%. 

Thanks Jeremy. That would not be an issue. Another question... How do I calculate my monthly payment to hit they 25% in 5 years with an interest rate of 8%? I'm struggling with this calculation. 

Hello BP!

I have an opportunity to buy a tri-plea with seller financing. If I have 25% equity in said property in 5 years, as the deal would be structured to meet that, could I go to a bank and refinance with conventional loan? 

Thanks 

Hey Craig.  Yeah so the tri-plex is going very well thus far. After doing some quick cleaning and having carpets cleaned filling the vacant 1 br upper was no problem and rent at $400 was above what was planned. Now building cap ex fund as planned for furnace, appliances, etc... I'm am very interested in acquiring more properties to build my portfolio though the only type of investments in the area I'm interested in are house hacking scenarios for me.   

I'm closing on my first deal tomorrow!! Thanks for the inspiration, knowledge and guts to pull the trigger! 

Purchase price $43,000... $9,000 below asking. Property just needs some aesthetic work. 

3 units. 1 efficient, 1 2b and 1 1b.

Rents $475, $375, and $200 = $1050. With room to increase rent.  2.4% of purchase price!!

2 units rented with great long term tenants. That was an attractive feature of this spot. 

I should cash flow over $100/ door to start. Tweeking here and there to cut expenses will make things hum along. I'm very excited to take this first step and am very close to making an offer on a duplex house hack scenario!!

Thanks again BP Community!!

thanks for the reply Frank! 

I would take out a loan from a traditional bank. Likely 3.5% down 30 year fixed at 4.5%. If I rented both units and 2 garage stalls income would be $1700/mo. I could install coin operated laundry in basement with ease which both units have access to. 

I ran out of analysis calculator uses. Is there another method. I'd like to find the bottom purchase price I would need to cash flow $100/ door and approach my father with that number.

Hello all-

I am very new and obsorbing info while getting to know the local market here in Dixon, Il. Convinced first home will be a duplex live in and here I have a unique opportunity to buy a property from my father. It is a large duplex (2) 2 bedroom, 4 car garage, on 2 acres near a developing commercial area. Property would be appraised commercial. Walmart with in walking distance. Banks, clinics, retail and restaurants all in the area/ walking distance. Appraised at roughly $400,000.

I currently live in the downstairs unit of this property. I'll try and roughly explain terms of the deal with my little education. My father and I would agree on current value based on appraisal. We then would agree on a purchase price. For this discussion we'll say value $400,000 purchase price $200,000. In purchase agreement it would state that upon my sale of the property I would owe my father or his estate the remainder of the appraised value at time of purchase. I buy for $200,000 sell down the road for $450,000 I pay father $200,000 to cover the $400,000 and pocket remaining $50,000.

The utilities are split, I can get $800 a month for rent per unit and rent 2 garage stalls for additional income, though I would occupy one unit for at least 1 year.

What are some things to consider? Should I treat this just as any property analysis? Anyone else had similar situation structured?

I'm an open book! What are your thought on this.

Thanks BP!

Any input from anyone would be great! 

Hello all- 

I am very new and obsorbing info while getting to know the local market here in Dixon, Il. Convinced first home will be a duplex live in and here I have a unique opportunity to buy a property from my father. It is a large duplex (2) 2 bedroom, 4 car garage, on 2 acres near a developing commercial area. Property would be appraised commercial. Walmart with in walking distance.  Banks, clinics, retail and restaurants all in the area/ walking distance. Appraised at roughly $400,000. 

I currently live in the downstairs unit of this property. I'll try and roughly explain terms of the deal with my little education. My father and  I would agree on current value based on appraisal. We then would agree on a purchase price. For this discussion we'll say value $400,000 purchase price $200,000.  In purchase agreement it would state that upon my sale of the property I would owe my father or his estate the remainder of the appraised value at time of purchase. I buy for $200,000 sell down the road for $450,000 I pay father $200,000 to cover the $400,000 and pocket remaining $50,000.

The utilities are split, I can get $800 a month for rent per unit and rent 2 garage stalls for additional income, though I would occupy one unit for at least 1 year. 

What are some things to consider? Should I treat this just as any property analysis? Anyone else had similar situation structured? 

I'm an open book! What are your thought on this. 

Thanks BP!

thanks Roy...unfortunately As it is that is not an option. Basement is only accessible through downstairs unit.  Would it be wise to install hook ups in one bedroom unit. It is upstairs. Is the increase in water usage, machine maintenance and risk of water damage worth broadening the pool of potential tenants by have the hookups? It's vacant current,y and I wonder if that has a lot to do with it.