Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
12y
So you're putting 20% down, there's a 5 year balloon AND you're paying an extra $30k for the experience??
If you're going to pay a premium you should be getting a financing package with terms that you can't get from the bank. For example: NO cash down, 30yr amm, 5.0% fixed and no balloon and maybe a year or two of interest only payments or something....
Real Estate Agent · Kennesaw, GA · Member since 2015 · 16 posts · 4 votes
8y
I think it all depends on what your investing goals are and what your portfolio looks like. If this is your first deal, you have little to no reserves, and you don't see that this property will appreciate-- then it's probably a bad deal for you. However, if the property is in an area with a low turnover rate, has high probability of appreciation, requires little to no repairs, and has equity pay down, this could be a great deal. If cash flow is a concern, wholesaling might be the way to pay the bills, not taking on rental properties. Too risky IMO.
$100 a door after PITI with a 20% down is like buying a ticket on the Titanic!
Not to toot my own horn but read through some of my old posts on land contracts. Ive done a bunch of land contracts totally 24 units over the last 3 years with mostly no cash down. Ive laid out the buying process and so forth in other responses.
Decent properties that cash flow on 20 year amortization or less with nothing down is what I look for. I use commercial financing to refi so 20 year amortization is the norm.