Updated almost 12 years ago on . Most recent reply
1st Partnership Deal
Would you do this deal? It doesn't have the cashflow I like, but its on 100% financing.
50K house (3/2/2). 22K needed in repairs. ARV of 90k. Rent at $950. 100% financing, including repairs at prime with a floor at 4% and no ceiling. 15 year note. I will only own 50% of the house/business, but I found the property, will oversee the remodel, will find the tenant, and deal with many of the on going maintenance. Partner brings the financing and book keeping.
I usually don't use the 50% rule when I do a major remodel. This one I figure taxes, insurance, CAPEX and vacancy will be about 40%.
Leaves a total of $60 a month in cashflow and aprox $290 in equity pay down to be shared. Again, no money down for me.