Two Financing Options...would Like Some Feedback.
Ready to buy my next property. Received 2 different financing options with different results. Would like some feedback on which one may make more sense.
First option will create $126 positive cashflow and give me $4750 cash after closing.
Second option will create $175 positive cash flow and give me $1650 cash after closing.
Take the cash or the cashflow....THAT IS THE QUESTION! Thanks in advance.
First off, I am a little confused. You say you are ready to BUY a house, but you are talking about the cash flow of SELLING a house.
Let's concentrate on the selling aspect as that is the message/question I think you are trying to ask.
Let us think this through together and see what we come up with:
$4750-1650=$3,150 extra cash
$175 @ month less $126 = an extra $49 monthly
But you would have to rent/lease out the property for over 5 years (64 months and change) to make up that extra $3,150 you are getting right now.
Add to that the fact that you may not have the option for that long or the current tenants may not stay that long.
My recommendation is to take the cash now. Chances are, when it comes times to purchase, the T/B won’t do it anyhow.
Then you can go out and pocket the extra cash again.
Hope that helps.
GA_John
[ Edited by GA_John on Date 01/02/2004 ]
[ Edited by GA_John on Date 01/02/2004 ][ Edited by GA_John on Date 01/02/2004 ]
Take the cash and do another deal to generate another $100 per month and take the cash again and etc etc.
Good LUCK and Thank You
Hope this helps some
Ted Jr[ Edited by Tedjr on Date 01/02/2004 ]
Tedjr Rules! Take the cash and make more! Repeat the process! Before you know it, you are very comfortable!! Good luck