Updated over 7 years ago on . Most recent reply
Assumable Mortgage Deal
Hello All,
I'm working on making my first investment purchase and I'm looking for any insight on anything I might be missing or need to think about. I've found someone that is looking for someone to assume their mortgage for a duplex in the military town I am stationed in. I realize that it may not necessarily cash-flow much (Texas state taxes) but I figure it will be a good first deal to begin learning the business with a minimal upfront investment with it being an assumable loan. Any suggestions and guidance would be greatly appreciated.
| Address | Killeen TX | Duplex built in 2015. |
| Property Valuation | $145,000.00 | |
| Offer for Property | $139,000.00 | |
| Mortgage Payment | $890.00 | Includes Mortgage+Taxes+Insurance |
| Taxes | $0.00 | Factored into line above already |
| Rent | $1,375.00 | Currently Rented a 650 & 725 |
| Property Management | $0.00 | 10% Tenant Renting at 650 is Property Manager |
| Capital Expenditures | $68.75 | 5% Built in 2015 |
| Repairs and Maintenance | $68.75 | 5% Built in 2016 |
| Vacancy Rate | $137.50 | 10% Assumption |
| Cash Flow | $210.00 | |
| Notes | ||
| Assumable Mortgage with buyer responsible for transfer fee and VA funding fee, Tenant Renting at 650 is current property manager if not other rent will be $725. | ||
| VA Funding Fee | $2,988.50 | |
| Title Transfer Fee | $250.00 | |
| Total Out of Pocket Costs | $3,238.50 |
V/R
Andrew Zannotti
Most Popular Reply
I am assuming that you are assuming a VA loan and providing a full release for the seller by substituting your entitlement? This is a very difficult process and almost never gets done. Reason being is that mortgage servicing companies are not set up to be lenders
Additionally, with this deal being very minimal, I would pass knowing I would be PCSing at some point. What is your management plan when the manager/tenant leaves?