WHAT A DEAL ? - Posted by JIM

Posted by PBoone on July 04, 2001 at 10:45:00:

Jim,
CAUTION, CAUTION, CAUTION!!! Does the agent have a long term financial interest in the property? if so it may be a good deal, if NO (as is usually the case) the agent may be selling you snake oil. RECHECK THE NUMBERS
Gross receipts based on actual income (tax returns) x .60 expense rate = cash flow. this formula is what the bank will use for considering the loan. they will want a minimum of 1.2? debt ratio.
Pat

WHAT A DEAL ? - Posted by JIM

Posted by JIM on July 04, 2001 at 09:25:43:

LOOKING INTO PURCHASE OF FIRST MULTI FAMILY PROPERTY FOR INVESTMENT, HAVE FOUND THREE FAMILY THAT WILL PUT 20K IN MY POCKET AT CLOSING WITH A POSITIVE CASH FLOW OF $500.00 PER MONTH. THE PROPERTY IS NOT IN THE BEST SECTION OF TOWN AND ALSO NOT THE BEST CONDITION, WILL NEED A LITTLE CARE OVER THE NEXT YEAR. THE ONLY PROBLEM I SEE IS THAT WE WILL BE FINANCING THE THE 20K AT CLOSING OVER THE TERM OF THE MORTGAGE, IS THIS A COMMON PRACTICE FOR INVESTORS, IT SEEMS OK SEEING THAT WE WILL HAVE A POSITIVE CASH FLOW. ANY SUGGESTIONS WOULD BE APPRECIATED, THIS SEEMS LIKE A GREAT DEAL BUT WE ARE NEW TO THIS REAL ESTATE GAME AND CAN ONLY GO BY WHAT OUR AGENT HAS TOLD US.

JIM