mortgage options

[Cristiana Kimmet]

Hi,

I have the opportunity to buy a investment apartment of about $125,000 which I could get around $800 per month in rent. I have about 25,000 cash to put down as right now and I could get the rest to pay off within a year. Wondering what most people would do for lending the money. I am looking at a 30 year mortgage so I can have low payments until I get the whole money to pay off. Any suggestions? Thank you

[Matt Devincenzo]

Originally posted by @Cristiana Kimmet:

I am willing to make little money (or non) for a year until I can pay off the whole thing and start collecting $800 per month. Also, this is a potential Vacation rental during the summer which I could be collecting $600 a week or so during 4 month out of the year. Still a bad deal?

Yeah definitely a horrible deal, you will end up losing money every month after all your expenses. Also it will probably either be a vacation rental or a full time rental. The ability to rent for $600/wk in the summer, then find a tenant for the remaining 8 months of the year is very unlikely. Who wants to move in knowing they have to move out in 6 mo? So you'll probably have to make it one or the other, and both will only bring in about 10K/yr so after expenses you're probably going to be throwing money into it every few months.