My first real estate investment!
I just wanted to let everyone know that I will be closing on my first real estate investment with no money out of pocket! Here's how it went down:
The property is a 2 family with 3 and 4 bedrooms the owner agreed to do owner financing! So I called my local bank to apply for a personal loan to cover the down payment and misc costs, approved! The cost of the property is 80k with 20k down the terms for the property is 15 years @6%. The income from the building gives me 1750 a month which can be raised with a little elbow grease from one of the apartments to around 1900 giving me a decent cash flow per month. Plan on paying as much as I can to pay off the personal loan and after a year refinance the owner out after a year or 2 and use the equity to purchase my next investment, which the owner has more properties in which he would be interested in selling me with owner financing. Any thoughts on this deal?