Posted by Nick on July 16, 2001 at 16:55:53:
Mike
If you add in taxes and insurance plus repairs you will go in the hole with a rent of $575 and a mortgage of $550. However, if you can build the multi-units and have a good positive cash flow it might be a deal. Unless you need a tax shelter or you are going to do something to bring in more money this is not a deal.
I would get bids on how much it would cost to build the extra units and go from there.
Help with creative financing - Posted by Mike
Posted by Mike on July 16, 2001 at 16:02:09:
Hello all,
Any help would be greatly appreciated. I have a lady who may be willing to owner finance a property. She asked that I write her an offer on paper and respond within the next few days. The situation:
This is a 3 BR / 1 BA home located on commercial property. There is a plumbing supply store located on one side of the property and a dive shop and swimming pool supply store on the other. She once was a co-owner in one of the stores and brought the property in hopes of adding on to the warehouse. Anyway . . . she has been renting the property for several years and has been ‘bitten’ a couple of times and wants out!
She was originally asking $100,000 for the property. I’m not sure what commercial property is going for in the area but this is extremely high for this house. She owes nothing and is willing to take less. Possible rental income is $575 per month. She says she would accept somewhere in the neighborhood of $500 - $550 per month from myself if we can work out a deal with details. I would like to get in with no money down but willing to put up to $2000 down if needed. Also, I need to take closing costs into consideration.
She also has 3 lots behind the property that she is willing to sell for an additional price. These are beautiful lots and would be a great site for apartments or multi-family homes in the future. My offer may include the price of the lots as well as the house on the commercial property.
I feel this may be a great investment down the road if I could pay this property off because of it’s location. I’m new to the no money down techniques. I own 3 other homes (none paid for) that I am renting and I want to avoid financing due to a large debt ratio accumulating.
Any help or suggestions would be appreciated. You may email me or simply respond. THANKS.