Posted by speednxs on June 07, 2006 at 18:44:09:
Only 30K for a downpayment is going to make this tough. Your CAP rate is a little over 6%. You are going to pay a higher interest rate and Private Mortgage Insurance (or similar). As a SWAG I’d say you are negative $400 a month. If you had 20% down with a lower loan amount and better interest rate you’d only be losing a few bucks a month if repairs remained reasonable. Since you know what actual loan rate you can get and you’ve looked over the last two years 1040 Schedule E’s (hint, hint) for actual expenses, your analysis is probably much more accurate than mine.
Newbie Needs Advice on 3 family. - Posted by chris
Posted by chris on June 07, 2006 at 14:34:59:
Boston area 3 family … Asking Price 399,000
Rents = $975, $1000, $1200.
Taxes/Ins ~ $5000
Have about 30K for down payment…House has been on market for a while now…lowered price from 430K to 415K to now 399K. Should I try to buy for 375K? All units are occupied, and all but 1 unit are renovated. Would probably considering having un-renovated unit delivered vacant, and I could live in and fix up.
Any help would be appreciated…real newbie at this stuff…thanks
Re: Newbie Needs Advice on 3 family. - Posted by Sean
Posted by Sean on June 09, 2006 at 15:27:06:
How long is LONG???<
Re: Newbie Needs Advice on 3 family. - Posted by dealmaker
Posted by dealmaker on June 07, 2006 at 19:39:36:
Why the rush to $375K? I’d be more likely to offer in the $330K range, you can always come up. Been on the market “awhile”, how long? Interest rates have been “jittery” lately. It’s not so much high interest rates that slow things down, it’s “changing” rates.
Go in low and slow are yout that anxious to lose money?