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38
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11
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Steven Primiano
  • Real Estate Agent
  • Holmdel, NJ
11
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38
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Less cash flow with no money down?

Steven Primiano
  • Real Estate Agent
  • Holmdel, NJ
Posted

Need a sanity check.  I have an opportunity to buy a 4BR rental well below market value.  House was built in 1990 and is in good shape.  I can pay cash and refinance after I close to pull every penny of my investment out.  No major defects, strong rental history with good tenants.  On paper, it has NEGATIVE $200 monthly cash flow when putting 35% in reserves.  So yeah, if I had to put 20% down, no way would this make sense.  But why not pick up a property with no money out of pocket?  Even if I need a major repair down the road like a furnace or roof and have to put money into it, I feel like I'd still be way ahead of the game.  Thoughts?

  • Steven Primiano
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