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.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.