how to structure this deal, any IDEAS! - Posted by swinston

Real Estate Investing Duplexes
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Posted by James Strange on January 06, 2003 at 02:00:24:

That sounds better. For regular finaceing what you will have to do is show that part of your payment is off set by rent. Take your rent income and multiply by .75 the number that you get can be shown as income.

Then look at you payments including any payment from the new property. Divide this number by your income. This will be your DTI as long as it is less than 50% you should be able to get a loan.

If you buy property that is rented you can use the rent rolls as income. Take rent multiply by .75 subtract payment.

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how to structure this deal, any IDEAS! - Posted by swinston

Posted by swinston on January 05, 2003 at 23:25:58:

Seller has 2 new 2/1 duplexs he paid 81000 and 76000 units rent for 525 x 4 = 2100 per month ok neighborhood all 30 year old duplexs

I just closed on my first duplex on 1-3-03 101,250 seller paid all closing and prepaid. I got my earnest money back $1000 and 400 appraisal fee plus 28 days of 650 per month rent 1 side and the other is to be rented by 1-6-03 for 650 PITI is about 890 I used an 80/20 with no cash. I am owner occupied. thats 410 cashflow

I have a contract to purchase a 3 unit for 108,000 with 1400 per month income and the rents can be raised. I’m trying FHA 5.75% about 900 piti.

Here’s the deal

The seller with the 2 duplexs wants 92,000 each. I told him that I have so much in the pipeline that I would lease option his duplex’s. I would make his payments at 755 and 715 piti total 1470, gross monthly income 2100. he wants 16,000 and 11,000. he says I don’t need to make any payments on the 2nd mort. "16,000 + 11,000 " for 6 months.

If I don’t purchase after 6 months I have to pay him 10% of the out standing 2nd 16,000 + 11,000 = 27,000 or 2700 for an additional 6 months.

I would like to do a contract for deed with a 2nd, or purchase subject to but he is worried about me making any payments late, I told him we could set-up an escrow account to do that, but he insisted on making the payments himself. So I told him how about if I make the payment to him but in the banks name, he said that would be fine.

Here’s the question
Should I just jump on it,
have him stay on in 2nd position ( he says it appraised for 101,000) the new first would be roughly 80% LTV
I think he’ll wait for his money, is a don’t wanter but may need to save face so he wants his price but is willing to cut interest on sencond with no payments I’m thinking 0%.

any suggestions on : should I lease purchase, try for contract for deed, or buy subject to.

we are also talking like $0 out of pocket to get in.

will I have alot of trouble financing these 6months to a year from now since I’ll have 2 properties already.

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Re: how to structure this deal, any IDEAS! - Posted by James Strange

Posted by James Strange on January 06, 2003 at 24:24:29:

If I am reading this right you just admitted in a public fourm that you commited mortgage fraud.

“I just closed on my first duplex on 1-3-03 101,250 seller paid all closing and prepaid. I got my earnest money back $1000 and 400 appraisal fee plus 28 days of 650 per month rent 1 side and the other is to be rented by 1-6-03 for 650 PITI is about 890 I used an 80/20 with no cash. I am owner occupied. thats 410 cashflow”

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due on sale clause - Posted by swinston

Posted by swinston on January 05, 2003 at 23:44:08:

has anyone ever experienced this? will the bank really call the loan due in 30 days? If they did could you hold them off for 60 days or is it 30 or else LEAVE!!
do the banks get punushed enough to not call a loan due?

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Re: how to structure this deal, any IDEAS! - Posted by swinston

Posted by swinston on January 06, 2003 at 24:29:59:

one lease is up 0n 2-7-03 and I’ll be moving in. thats why I wonder if I’ll have trouble financing the others.
I have 60 days to occupy.