Updated over 5 years ago on . Most recent reply
First Deal ...jitters. and help
Could use ya'lls thoughts. Here's the deal I'm under contract on...120 purchase, 2.875 rate, 10% down, conventional (2nd home I have to buy this as)...house needs rehab...assuming about 20ish. so 140 all in, 160-165 ARV. Under the current numbers, should cashflow about 150 including pretty conservative reserved estimates. My catch is, it will take about 12 for the down payment...4 for closing costs...another 20 in rehab. Cash out of my pocket is about 36K.
Cash on cash at that point is only about 6%. This is my FIRST deal. So, cash on cash to me is low...and it sucks up a lot of cash to do this deal and make it work. However, it's my first deal and the experience of that is worth something. I think I'm overpaying by 5-10k - but in this market and area and with these sellers who have been pretty reluctant to work with me on much, it is what it is.
Would ya'll do it given how much cash it will lock up and the low cash on cash or ...keep looking. Btw, good area...appreciation has been steady. Decent school district, etc