- Joined
- Dec 5, 2007
- Messages
- 60
This is a lead that fell in my lap
and it is from a friend of mine. He used to live in the property and
has been renting it out for the last 6 months, he has found that being a
landlord is challenging and now wants out.
Listed comparable properties in the immediate area are two for $355k and one for $329k, my friend is asking $330k.
This is a half-duplex, 1350 sq.ft., 3 bed/3 bath, built in 2006 and says it is in good condition.
My
friend has monthly expenses on this house of $1860 but is only
collecting a rent of $1750 so he has a negative cashflow of $110/month.
He
has a 1st mortgage of $290k at a rate of 3.09% with a payout penalty of
$3k. I mentioned to him after paying realtor fees and the payout
penalty that this alone would eat up $22k and that the real estate
market in Calgary was likely heading down somewhat because of the low
oil prices.
He agreed with me on these things and said that
what he wants out of this deal at bare minimum is 20k so he can put that
money down into the new house he is having built in 2 months from now
so he can lower his CMHC fees and therefore lowering the payment on his
new house by $150/month...
This is my first creative
finance deal ever and my instinct is AFS and then stick in a tenant
buyer for a classic RTO. Other than that I have no friggin clue on what
to do, can anyone please give me some suggestions?
Nick
and it is from a friend of mine. He used to live in the property and
has been renting it out for the last 6 months, he has found that being a
landlord is challenging and now wants out.
Listed comparable properties in the immediate area are two for $355k and one for $329k, my friend is asking $330k.
This is a half-duplex, 1350 sq.ft., 3 bed/3 bath, built in 2006 and says it is in good condition.
My
friend has monthly expenses on this house of $1860 but is only
collecting a rent of $1750 so he has a negative cashflow of $110/month.
He
has a 1st mortgage of $290k at a rate of 3.09% with a payout penalty of
$3k. I mentioned to him after paying realtor fees and the payout
penalty that this alone would eat up $22k and that the real estate
market in Calgary was likely heading down somewhat because of the low
oil prices.
He agreed with me on these things and said that
what he wants out of this deal at bare minimum is 20k so he can put that
money down into the new house he is having built in 2 months from now
so he can lower his CMHC fees and therefore lowering the payment on his
new house by $150/month...
This is my first creative
finance deal ever and my instinct is AFS and then stick in a tenant
buyer for a classic RTO. Other than that I have no friggin clue on what
to do, can anyone please give me some suggestions?
Nick