Would Like Some Input On This Deal - Any Insight?
I have an opportunity to purchase two properties from the same seller Purchase Price is going to be between $200k and $220k depending on negotiations Older Frame Home 3BR 1.5BTH (1800ft) and 1 Older Single Wide Mobile on 1.07 acres Older Frame Home 2BR 1BTH (1200ft) and 2 Older Single Wide Mobiles on 1.16 acres All in fair (not good) shape All Currently Rented Month to Month for a total of $2700 / month Taxes and Insurance will run $200/month I can get 100% financing at around 6% with the help of some shorter term owner financing for the purchase and then refinancing on a fixed 30 year FNMA shortly after. Should make my PITI payment less around $1400 Other thoughts: The properties are pretty rural at the most 14 miles out from any major towns They have a good rental history Looks like great cash flow BUT with little opportunity for appreciation Anyone out there with a similar experience or situation -- good - bad or indifferent? Thank You :-S
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$1000+ a month positive cash flow on two lower end properties. Not bad. Get the tenant to pay down the mortgage. Plus the write off's for repairs and depreciation. You might not get much appreciation, but with a good cash flow like this....I would bite. Especially with the financing. Even if you have a 50% vacancy rate, you would almost break even.