Offlinei found a 3 unit apartment building i am interested in. its being sold for 11,500. it needs some work on the inside. but it doesnt look terrible. in the description it says that owner financing is available. its in an area that i believe will have people moving there soon because they just built a federal prison and are also opening up a mill so theres going to be hundreds of job openings this year.
the only problem is i dont have good credit and im not working at the moment. i run my own construction business but i dont have work for this winter. but i have alot lined up for spring so ill have money then. so what does everyone think of this? does it sound like a good idea and is there any way of getting it considering the situation im in at the moment? any info would be greatly appreciated.
Go for it! When you look at this type of property, you need to find out these important things:
-What do/will the units rent for?
-Is there a rent roll or any history of prior renters?
-Get 2 years of tax returns and statements on the property if they are available (they should be if its been rented out at all)
-What expenses are associated with owning them?
-Are utilities on their own meters?
-How much will property management cost you.
-What kind of vacancy rate can you expect.
Do your due diligence before looking at getting the funding. Do you have any credit cards at all? Owner financing are the BEST ones to go for! No qualifying and no credit. But, you need to make sure you can pay the loan. Is there a family member that would help you or someone you could partner with initially?
Go to www.rentometer.com or www.zilpy.com to do some initial analysis on them. Then do a more thorough analysis.
It sounds like the right kind of town to invest in with jobs coming in, and a growth area from what you reveal, but make sure to do your due diligence!
Tammy is right with all the questions you have to ask before giving an offer. Another point to think about is how long the owner will finance it for 1,3, or 5 years. If it is only 1 yr, you have to start working on your credit repair right away before you go to the bank. Jeremy and I bought a 2 fam with financing for 10 yrs. Doesnt happen all the time but they are out there.
Also, how much of a downpayment is the seller looking for and how will you get it. (partner, family member)
Sounds like you could have a nice deal, but due some research first, Good Luck...Jan
Where??? I'll buy it