Possible 1st deal, NEED ADVICE - Posted by Scott

Posted by JohnBoy on July 16, 2001 at 12:39:43:

You are looking at $260k worth of property with $2770 in monthly cash flow.

After adding in property taxes, insurance, maintenance & repairs, vacancies, and principle & interest payments you would be lucky to break even. Where’s the deal in this?

What interest rate do you estimate you will be paying on a new mortgage? What rate will the seller carry paper at? What are the taxes on each property? What is the break down on rents coming in for each property?

I would estimate you would need to be offering about $200k for all 3 to make this a deal. $208k tops unless you want to plunk a chunk a cash down on these to make them cash flow decently.

Possible 1st deal, NEED ADVICE - Posted by Scott

Posted by Scott on July 16, 2001 at 12:03:46:

I have found three duplexes for sale. One for $75,000, one at $85,000 and one at $100,000. All are the same owner. He has them listed seperate but would like to sell all at once as a package. He is going to do an exchange to buy another property and delay the capital gains. Anyway the realtor said that he is willing to hold up to 50% paper. He has existing mortgages but they must add up to 50% or less of the price. How can I strucure an offer that will be a possible no money down deal. The gross income is $2770 a month, so the money is there. If he holds paper, he may be willing to come down a little in price, not much.
Please help! May not last long.