Hi there everyone, I'm in the middle of negotiations for my first property. I've analyzed the numbers on this duplex and will be going with an FHA loan at 3.5% down. The property will cash flow about $80 while I'm house hacking but will cash flow $788 when I decide to move and rent both apartments.
The negotiation is at a stand still at the moment since the seller is asking for the maximum comps value in the area. Which in turn I will start off with very little or no extra equity from the buy itself (hope that made since).
So in general is it a good deal when starting off with very little equity?
@Ray Johnson Compared to its comps this property has 1 less room slightly small square footage. I believe it will appraise for the stand still price. But I’m not too sure about not having more equity even though it will cash flow.
We are in a sellers market right now. Most sellers are having a pretty easy time getting their price. All trends point to the prices continuing to rise in the near future. Ask yourself this question. Will you be able to reproduce a better deal if you don't close on this one? Afterall, you need to live somewhere.
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