Was on CL and found what I think may be a deal...
"Fantastic 4-unit building on the border of Kettering and Oakwood. These buildings were selling consistently for $150,000-170,000 in the late '90s up to 2007. Now steal this one for only $106,500. All units have nice hardwood floors, updated kitchens and baths. The windows have been updated within the past 5 years as well. Tenants pay their own electricity, which includes baseboard heat and wall a/c units. There is an attached garage that provides 1 parking spot per unit along with additional storage in the basement and coin operated laundry that provides additional income.
This property is close to downtown Dayton and Kettering making it a great options for either young professionals or college students attending the nearby University of Dayton or Sinclair Community College.
This property will produce a gross rental income of $1,700 per month with tenants paying all utilities when fully occupied. "
So I emailed the listing person saying, I may be interested in your multi-family unit in Kettering if the terms are right and you finance 100% over time. Please let me know what terms you are considering and maybe we can work something out.
I got this reply and I was hoping someone could give me some advice, bad or good, I would like to know how some of tyou that have finished deals would proceed. I have not yet looked at the property because I have read that I should make an offer, wait for offer to be accepted and then look at the property... So please be brutaly honest.
Kevin, thanks for your interest. Normally, on owner financed deals we look for a minimum of 5-10% down, an interest rate of about 8% on the remaining balance and, depending on price that we work out, we will carry the balance for 3-10 years.
It seems to me the only issue is the 5-10% down... I am wanting 0 down deals so that I can get my feet wet and build my networth so that I can go at some bigger and better deals. And I could use some help as to how to re-approach this owner... I am not afraid to make an offer but I am afraid of messing something up. Any help would be great...
My first challenge seems to be knowing what to do and when and with what offer.
Looking at my counties Auditors website in reference to this property, it was re-appraised in 2008 for 133,450.
Thanks to everyone in advance. Ill be watching this post like crazy.
SHORT TERM & Long Term GOALS
Expand my knowledge about REI and read 2 more books.
Never Give up and Succeed!