Updated almost 9 years ago on . Most recent reply
Pay cash or finance this deal?
My parents bought some land and attached it to their existing land. Pretty much turning 8 acres into 15. The land they extended into has a mobile home. They didn't think the home was worth the asking price at the time.
It's a 3 bed, 2 bath mobile home. They originally wanted $20,000. It has a tenant who's been there for a year who pays $750 a month, $600 rent, $150 lot payment. So now, the landlord's get the $750 and send my parents a $150 check at the first of the month.
The numbers just scream at me that this is a killer deal, the house will pay for itself in less than 3 years and they were asking $20k almost a year ago. I guarantee if I offered $15k cash, they'd accept.
So should I finance this deal or pay cash? I have about $15k right now, but bad credit. Not sure if I should finance because my interest rate may be bad based on my credit rating. I'm not sure which is better in this situation.
Also if you have any REI financing books you'd recommend, let me know!!