Straight Cash Deal...

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...
Okay, let's say I find a cheap *cheap* rental unit in the city. Actually, I have found a couple of them. One is a single family residence for $10k, needs plumbing repairs but otherwise is liveable. Part of an estate sale. Anyway, the last time it was rented, it held $650 a month...that was roughly a year or so ago. If you can, should you purchase cash? And if so, what kinds of costs should you expect to encounter with a straight cash deal as opposed to financing?

- Joe

Comments(3)

  • regal10th January, 2005

    Paying $10,000 cash for a property that brought you $650/mo. income would be great. You'd be paid back in just over 15 months and the you'd keep receiving the $650 for life.

    Closing costs would be much lower than if you financed. Title, (escrow/attorney) and any transfer taxes there might be would be the majority of the fees. No appraisal, loan origination fees, etc.

    Jeez, I'd love to buy a propery for $10k. lol


    Quote:
    On 2005-01-07 22:01, JMAAB wrote:
    ...
    Okay, let's say I find a cheap *cheap* rental unit in the city. Actually, I have found a couple of them. One is a single family residence for $10k, needs plumbing repairs but otherwise is liveable. Part of an estate sale. Anyway, the last time it was rented, it held $650 a month...that was roughly a year or so ago. If you can, should you purchase cash? And if so, what kinds of costs should you expect to encounter with a straight cash deal as opposed to financing?

    - Joe

  • Young_Inno_Vative13th January, 2005

    yea im about 4 hours from those parts of NY and i am seriously thinking of taking a few trips...
    some lenders pay for title and inspection as far as im aware...which you would pay for...
    most other things are pretty standard although i might be leaving a few things out
    ~Andrew

  • kenmax13th January, 2005

    or you could get a small loan and let the renters pay off the loan for you put the 10k back in reserve to cover any suprises and buy more likekind houses.......km

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