Condo deal help please! - Posted by Dave

Posted by David Garcia on February 09, 2004 at 21:48:56:

Deal too thin.

David GArcia

Condo deal help please! - Posted by Dave

Posted by Dave on February 09, 2004 at 20:44:02:

I have an opportunity to do my frist deal in the form of a condo. Problem is that I just found out it’s non-conforming (6 of 18 rented) and my lender is sticking it to me on rates and terms. Here’s the terms of my deal. Any advice on my first transaction would be greatly appreciated.

Description: 2bd, 2.5 bth, 1 car, fp, no basement 1232 sq ft end unit. Great neighborhood in great school district (approx 3% appreciation rate average). 2 other units asking between 84,900-89,900.

selling price $85900
$2000 to buyer at closing

buyer downpayment of $8590
first mortgage of $68,720 @ 5.75 7/1 arm
second mortgage of $8590 @ 7.25 15 year fixed
tax $91
condo fee $51
insurance $50?

bottom line: $670.41
estimated rent per month of $725
$660 cash flow…barely enough to cover one month vacancy!

Re: Condo deal help please! - Posted by jeff castle

Posted by jeff castle on February 11, 2004 at 14:56:54:

run from this deal buy a multifamily house in a low end area that has a big cash flow. say your going to live in it to get the best rates. When the value increases borrow against it to buy more of the same and your on your way.

You make money or no deal Pass (nt) - Posted by Dee-Texas

Posted by Dee-Texas on February 10, 2004 at 08:11:27: