Found a nice off market condo...how do I find the down payment!?
3BD, 2.5BA 1368sqft. Asking $105,000. Renting for $1335/mo, $190/mo HOA
The seller has a nicer 12plex and is traveling abroad 30% of the year so he just doesn't have time to deal with this, AND another one in the same HOA will be sold off (to me!) in the near future, with the same Cap and CoC.
I'm looking for some creative ways to approach this, I have minimal ($5000) cash to put down at the moment.
NEW 3br have been recently built in this area and going for 1500-1700/mo, this is much older, but completely rehabbed. In my area (Iowa City/Coralville) I've been told above 8% is good. The CoC returns seems really good too.
1) Should I try and buy on contract? What would that look like?
2) I have some family who could potentially help with the down payment...what are some options for structuring such deal/approaching them?
The numbers:
| Condo Association dues | $190 |
| Insurance | $30 |
| Maintenance | $30 |
| Property Taxes | $127 |
| Total Monthly Expenses | $377 |
| Total Annual Expenses | $4,524 |
| Net Monthly Income | $953 |
| Net Annual Income | $11,436 |
| Purchase Price | $105,000 |
| Downpayment | $21,000 |
| Borrow | $84,000 |
| Monthly Mortgage | $554 |
| Monthly Cash Flow | $399 |
| Annual Cash Flow | $4,788 |
| Cap Rate | 10.89% |
| Cash on Cash Return | 22.80% |