I’d stay away from an hoa
@caleb and @al - what are some creative ways to finance rental properties that you have come across or even used in order to put little to no money down??
I️ have been trying to find seller carry deals but those are few and far between and they usually want high interest rates and short terms so I️t seems like getting a mortgage through a lender is a better deal...
Do you have a mortgage? If not, fha, 203k.
Find a partner.
After the 5 k to fix what is the condo worth?
For the sake of being repetitive, be very careful with HOA's as they have very strict rules when it comes to condos. Not to mention the special assessments can wipe out years of cash flow.
With that being said, on the surface these properties sound profitable but based on loose analysis, once you factor in property management, vacancy, maintenance, insurance, etc, the property isn't very profitable. I use conservative numbers when I evaluate properties, but I would think this cash flow around $100 a month give or take a few bucks based on how you underwrite deals. Just remember that the less you put down, the smaller amount of cash flow you can count on. Hope this helps.
I haven’t used any creative financing yet. 20 percent down on each one. The only thing I’ve been doing is buying cheaper houses in good rental markets, ranging from 40-80k each
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