BIG question. Im stuck
Hey, there is a house that is for sale. There are currently long term tenants living in the house. The landlord is a good friend of mine and is willing to sell it to me with a huge discount. The only problem is i have no money to put down and would have to use a private lender with a 7% loan.
after doing the math i would be making a profit of about $215 a month. My friend (the seller) is telling me that the appreciation is where i would make my money. Would any of you guys take a deal with this low of a return? The house appraises for 135K. He is selling to me for 110K