Trying to figure things out
Hi all, been reading here for a while but first post. Am starting to put together a plan for getting into buy and hold with cheaper properties. I picked one on the mls and started trying to associate costs to see how far off I am.
Property is a mobile home with addition on three lots. Also on lot is another house but needs complete renovation. Asking price is 18.5k.
I am looking at opening this up to section 8. Fair market rent is 800 for a 3 bedroom for the county, when I stopped in at the housing office to ask some questions they said it is accurate, but if tenant pays utilities some of that would be deducted.
Final issue is financing. I have around 6k saved towards down payment now, but with a loan this small I think conventional loan is out. Listing has been up for over 280 days so I was thinking of pursuing seller financing as discussed here: http://www.biggerpockets.com/forums/311/topics/125040-how-do-you-scale-your-business-so-quick. If all worked out I am estimating principle and interest around 200, taxes are 1000 per year.
It seems like potential for positive cash flow, but also if everything goes horrible the investment is under 20k. Any advise on whether or not to move forward, and the best way to do so would be great. Thanks!