Posted by Randy (SD) on December 16, 2003 at 11:49:24:
There are two concerns and with your deal. The first concern it is your paying full retail price, certainly not a good deal for an investor. I suggest finding a seller that is more motivated. The second concern is weekly rents, weekly rental tenants are very transitory, you ask about seeing the lease agreements prior to purchase ABSOLUTELY! If there are even any lease agreements-considering their weekly tenants. Personally I would not touch this deal.
I don’t understand your positive cash flow calculation, the weekly rents total $1100 a month, $60,000 finance at 5.5 percent interest (180 mos.) has a principal and interest payment of $490.25. Have you verified these numbers or are you taking the seller/realtors word for it?
1st Rental - Duplex … Will it work ? - Posted by FloridaNewbie
Posted by FloridaNewbie on December 13, 2003 at 22:56:50:
I have a deal to purchase a duplex built in 1915 for $69,000. Appraised for 70,000 over a yr ago. The asking price was $74,900. The seller (also a realtor) says the tenants are paying $150/$125 weekly (utilities all included). Power on separate meters but nothing else. What does it take to separate gas/water etc… ? Seller selling because she does not want to deal with tenants. Should I request a copy of lease aggrements prior to purchase? I will put down 10% and finance the rest @ approx 5.5% for 15 yrs. There should approx $330/month positive cash flow. The age of this frame constructed duplex in addition to the seller’s disclosure stating a recent termite treatment concern me. Contract is wtitten “as is” with right to inspect. My goal is to buy one to two rentals/yr w/15 yr fixed mortgages for retirement income but a property this old w/potential termite problems has me re-thinking my offer. Or, am I just experiencing “cold feet” ?