Need help with deal - Posted by Ted Bowen(OK)

Posted by Tim (Atlanta) on November 01, 2001 at 13:29:16:

Maybe you have thought of this, maybe not. Why not buy her house and let her owner finance it and rent the other house to her? Say you pay $45,000 for the house you buy from her. Since you have paid full market value, maybe she would owner finance for 0% interest for 10 years. That would make your payments to her at $375 per month, and her rent payment to you at $400 per month. Now rent her house out for $525 per month, and you have $150 in positive cash flow without the other expenses involved. Make sure to take into account taxes, insurance, maintenance and vacancies. You could be at or near a break even cash flow on this deal depending on your expenses, so be careful.

Need help with deal - Posted by Ted Bowen(OK)

Posted by Ted Bowen(OK) on November 01, 2001 at 12:49:56:

I have a friend who is in her 70’s that currently owns her home and she would like for me to take her house and then rent her one of my houses. Basically she wants no responsibility for house maintenance and wants to move from the house that she and her husband lived in for many years.

What I am having trouble doing is figuring out something that is good for me and her… The house she wants to rent from me normally rents for about $400/per month and her house is worth approx. $45,000 and could be rented for around $525.

Any ideas??? Thanks and have a great day.