Posted by BillW. on July 18, 2001 at 22:05:53:
Two things come to mind.
- We are supposed to be buying from motivated sellers at a discount. That’s one way we build our net worth. You haven’t mentioned the actual numbers, but this sounds like a retail deal. This cash flow is really minimal. If you were only paying 70 percent of actual value as a total, however, the cash flow should look better, unless you’re living in one of those areas where prices are way out of whack with rents.
- Speaking for myself, this isn’t enough cash flow to make me interested. If you have a large reserve or a large monthly income and can afford the neg. cash flow if there are any problems (and there will be), then maybe it might be OK, but only if you’re in a rapidly appreciating area.
I’d try to hammer the bank for a lower price.