Looking To Close My First Deal
Thanks to everyone who has posted or replied in this forum, the information has been very useful.
I've found a triplex all 2 bedrooms @ least 900 sq ft units old but in great shape. seller wtd 33k but know wants 19k cash but will carry if I up the price.
Building has new roof but no gutters basement always wet and was vandalized, 1st flr unit had a fire no struct damage just smoke.
this i can fix quickly, with repairs building shld be worth @ lst 55k to 60k what type of note shld i have the owner carry. I want keep the building
What is the rent?
Why not offer in the low $20's (23-24?). Offer a 5 year ballon note at 7%-8% interest. Will the owner go for cash back at closing? If so offer more and use the cash you get to fix up the unit that is fire damaged and start work on the basement. It will be hard to get convential financing for this low of an amount. You might think of a HELOC (line of credit) after closing to pay for repairs and/or pay off the owners note (especially if the terms are unfovorable). Second option, You might be able to get the owner to carry a 1 year note then get a HELOC to pay him off.