Posted by $Cash$ on June 27, 2002 at 22:43:45:
If the loan is amoritized over 30 years your payment would be around $341.00 plus taxes and insurance, so let’s say in total $380.00 per month. Now calculate in the repairs, wear and tear, etc. and remember your 5 year balloon payment. What do you think your can rent the house for above what your monthly costs would be?
How much will the house increase in value before the balloon payment is due. At this time will you want to sell the house and take your profit?
Would you be better off immediately selling the house, making sure in your contract that the loan is assumable, for let’s say $6000 down, pocket some immediate money and going on to the next deal.
Just some things I would think about if I were in your position.