Posted by Bill (WI) on October 24, 2005 at 08:17:00:
Hi Nate
Well I dont think this place would work even if the owner financed 100%. Its just to pricey and the rents are too low. So you have had great success getting owner financing on mobile homes?
apartment - Posted by Bill (WI)
Posted by Bill (WI) on October 21, 2005 at 15:00:39:
There is a 4 family for sale near where I live. The price is $180,000. Rents are $440 a month each. NOI is only about $10,000 mainly because property taxes are $4,500 a year. I know the cap rate on this is low. I can get %100 percent financing for a rental but obvisouly I wouldnt be making anything this route. Is there something creative I may be missing or is this just too pricey unless you can put down a large sum of money?
Re: apartment - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on October 21, 2005 at 16:08:19:
Sorry. I was speed reading your post. As far a return on investment goes…That’s your call. Most people will not even consider a deal unless it is a “10 CAP” (10% capitalization rate). Looks like your property has a Cap rate of 5.5… That’s two-percent above inflation…regardless of financing.
“Is there something creative I may be missing or is this just too pricey unless you can put down a large sum of money?” You could pay for the property ALL CASH and would still be better off putting your money into a money market account.
Just my $0.02
Re: apartment - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on October 21, 2005 at 15:18:50:
Yes. 100% financing is available for rentals.
Re: apartment - Posted by Bill (WI)
Posted by Bill (WI) on October 21, 2005 at 15:56:28:
Yes I know thanks.
Re: apartment - Posted by Nate-WI
Posted by Nate-WI on October 21, 2005 at 20:35:16:
Hey Bill,
Hello from Appleton. Be creative!!! If your seller will be. Think aboutowner financing. Maybe get 80 LTV from a lender and he can carry a second. I’m looking at a really solid duplex here in Appleton that is listed at 83K. The owner just wants out and is willing to land contract the deal. Lots of options with that. I could do a 12% interest only with a 1 yr balloon and the re-fi and cash him out…or do a 5% P&I with a two year balloon. Plus he is willing to do a zero down deal with the above mentioned. Plus since its a private loan it doesn’t report to the credit bureau. Something to think about. I’ve been doing mobile home deals up here as a part time investor and have had great success with owner financing.
Nate-WI