This is my first forum post so bare with me...
I am looking at a duplex in north Florida. I believe I can get it for 150k. I currently have 2 houses financed but no other debt. My current mortgage company says that I could finance with about 40k down. That much down scares me. Is that normal on an investment property? I calculate about an 800 dollar mortgage while collecting 1400 rent. With that much down is it a good ROI? Any advice is much appreciated.
Take this with a grain of salt. But calculating your yearly ROI (1400 - 800)(12) then / 40000) . You see your ROI is around 18%. Is that good? Its is up to you. However you did not consider capital expenditures, water, electricity, and any other cost. Also take a look in the markets as of. Feds gave negative rates, so you may even get a better loan. Good luck!
@Derek Hedgespeth Welcome to BP and good luck on your first investment property. I hope it's the first of many. Keep us posted.
Thank you for responding, I appreciate it!
That down payment does seem high. I would shop a little more until you find an investor friendly bank in your area. Don't go to the big names like Wells Fargo. Go to the local smaller banks. Also, join a local real estate investor club. They will have the banks that you need.