My first rental property deal is going down right now as I write

[Manuel Rivera]

Hi people! I just put an offer on my first rental property located in Washington DC and it was accepted! Its a 2BDR, 1B condo and is located 3 blocks away from the metro. I have 3 days to back off the deal or break the contract. My concern is that when I ran the numbers I made a mistake thinking it came out with some cash flow but in reality I break out even until I pay off the $28K that I'm putting down including closing costs (15% down and around $7k in closing). Im financing the $28K with a credit line, so basically I'm putting $0 from my savings. There's another issue, I'm appraising the condo today and most likely it will appraise for no more than $130K. I offered $141K and the bank is giving me an interest rate of 5.99% for 30 years. My credit line has an APR of 5.09% and the rent can go for $1750/month. Should I proceed with the deal even though the condo will appraise for less? Is it a good deal? If it was you, would you purchase this condo with those mentioned numbers? Any information will be greatly appreciated. Thanks!

[Ray Harrell]

If it appraises for $130, you should adjust your offer or get out of the deal. Why go into a property with $11K in negative equity? Also, what lender do you have that will allow you to finance the down payment. They usually need to see seasoned funds (meaning in your account for at least 3 months, as well as a trail of where the funds came from).