Posted by gio on March 23, 2001 at 19:55:36:
or
is there a way that i could structure the 2nd one to bring in a + cash flow?
Newbie needs help on two deals… - Posted by Gio
Posted by Gio on March 23, 2001 at 18:42:57:
Hi there!
I’m a 22 year old mom with crummy credit that wants to get a start on real estate investing. I have two houses that I’m going to see this weekend and need input on if its a good deal and how to structure the deal…
Here are the details:
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A duplex - 800 sq feet each side with tenants paying rent of 725 and 750. asking 215,000. he is a mortgage broker himself and said that with “okay” credit he’ll help get a 80% conventional loan and carry 10% with a 10% down payment. He is willing to carry up to 50% with excellent credit (which I don’t have). Reason for selling: his wife doesn’t want to be a landlord any longer.
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A single family home - 4 bed, 2 bath Area rents between 1500-1695. Assumable mortgage of 143,000 monthly payment of 6% is asking 35000 for her equity. Willing to carry 10,000 with 25,000 down. Reason for selling: has two homes and wants to move into the other ones without the burden of two mortgages and tenants.
Can anyone help?
By the way, thanks for the great site and any responses in advance!
Giovannie
Re: Newbie needs help on two deals… - Posted by WealthWorthy
Posted by WealthWorthy on March 23, 2001 at 19:43:51:
Deal 1 - this deal doesn’t seem to allow for much cash flow if any with a price of $215k and monthly rents at only $1,475. If you take your annual gross income $17,700 ($1,475 x 12) and multipl that by 7 $123,900 is the most I would pay for a house with that amount of gross income.
Deal 2- I would not give the lady a $25,000 down payment and would not offer her $143,000 for the home.