KAREN IN REGARDS TO YOUR QUESTION[DONT KNOW IF THIS WILL REACH YOU IN TIME]
I WOULD ALWAYS USE OWNER CARRY IF WHAT IT WILL COST ME IS LESS THEN THE MONEY I COULD POSSIBLY MAKE IN 5 YEARS ON ANOTHER PROPERTY
ALOT DEPENDS ON WHY YOU ARE AQUIRING ANOTHER PROPERTY ?IS IT A SECOND HOME?OR IS IT AN INVESTMENT PROPERTY? CAN YOU PULL 20-50K OUT OF IT IN 5 YRS?
WILL IT GO UP IN VALUE THAT MUCH OR DO YOU HAVE TO STICK 30K INTO IT TO MAKE 5K IF THAT IS THE CASE I WOULD SAY WALK AWAY ,HOWEVER IF YOU WILL COME OUT AHEAD OR MAYBE EVEN…THERE ARE TONS OF WAYS TO COME OUT AHEAD
PLEASE LET ME KNOW HOW IT TURNS OUT
JOHN R
I am working on a real estate deal where the owners agreed to carry back part of the down payment at 8%, amortized for 15 years but paid back in a balloon in five years. my other option is to refinance/take cash out of another property I own and pay that amount of money off in 10 years.
The main disadvantage I can figure is that the refinanced property would be paid off in five years if I don’t refinance, instead of ten, costing me about $400-500 a month for those additional five years.
the main advantage I can figure is that interest rates are low and I wouldn’t have the balloon in five years, plus my payments would be about $100 per month lower for the first five years.
I am looking for advice/opinions on these options.