What do you think of this being a first deal?

3 Replies

Here is the first deal I am thinking about doing. It is a condo and I could get for 75K and have seller pay closing. The HOA is 165 a mth with taxes of 575 a yr. Would rent for 950 to 1000 a mth. Problem is yes I have 15K in savings to cover down payment but would wipe me out with no reserves for my personal or business. Would there be any way around putting the full 20% down?

@Todd Lightfoot What sort of equity is in the property at 75K? Is it worth 90k? 100k? You could do a deal where you use equity to cover the down payment short fall. You can get an appraisal done, only costs $500 or so, but may be a great investment to keep you from having to pay PMI. See if you can use equity and hold onto your savings.

Sadly this property would not appraise more than 80K. The seller will have all rehab done. I was looking at the cash flow. 

Sounds like a great deal to me. $15K to make $500/month in cash flow??? That's a no brainer, you'll have money saved back up in no time! Go for it!

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