Duplex Deall - Posted by Crocodile Hunter

Real Estate Investing Duplexes
1

Posted by Tracy Cline on July 08, 2004 at 06:39:23:

Interesting comments. I’d like to learn more about 100% financing. Is this common place? How is it done? Regular brokers/lenders? Creative financing with 2d mortgage? Can you provide additional specific information? I’d like to start purchasing PCF multi-unit properties with 100% financing, but don’t really know where to start.

Thanks,
Tracy

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Duplex Deall - Posted by Crocodile Hunter

Posted by Crocodile Hunter on July 07, 2004 at 10:32:55:

G’Day,

I am newbie to rental property investing, so i would like some feed back on a deal i am about to pull the trigger on.

Duplex in young people part of Dallas. $260,000. Apparaised $310,000. But seller has had it on the market 3+ months now.

Rents bring in 2 X $1,200 or $2,400

Not going to move in myself as I have another property i am living in now.

Considering doing a 7yr arm, at 5.5% with 10% down, payments will be about $2000 with all monthly fees (taxes, ho)?

So cash flow would be $400/month.

Thanks,

Croc

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Re: Duplex Deall - Posted by Matt G

Posted by Matt G on July 07, 2004 at 23:39:19:

Croc-
don’t know how you like cash? if you 100% leverage the property, pull $50,000 out then let the property pay the mtg. how many months does it take to get 50k @400 a month?
Just my personal experience.
Best Regards,
Matthew

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Re: Duplex Deall - Posted by Crocodile Hunter

Posted by Crocodile Hunter on July 11, 2004 at 21:52:06:

huh??

If i finance 100% of the property value then it will have negative cash flow, AND the interest rate will be 1 to 2% higher since this is a non-resident, 2-unit deal (which already has a higher rate of + 0.5%).

also, what do you mean by “pull $50,000 out”. From where? If i 100% leverage, i am 0% equity.

I am not getting what you are suggesting, can you elaborate.

thanks mate!
daniel