Deal or No Deal?!?

Question

owner financed property with 50% down on a 90 K sales price at 6% interest fully amortized in 10 yrs. Move in ready in great area with rents in the 800-950 range.......deal or no deal?

Jon Magnusson · Answer

Keep in mind I'm a newbie, but it looks promising to me.  Personally I'd want to do more homework on the property; familiarize myself with the neighbor hood, etc.  But once you're in you can always wait a year and refinance and pay off the loan, take some equity and do it again!

Esaul Viramontes · Answer

Haha Thnx man....had to steal it from my man Saul Goodman from "Breaking Bad" Lol  I should have mentioned before hand that traditional financing is out of the question.

Steve Vaughan · Answer

Not to me. Definitely no if a Land Contract. Paying 1% of rent per month is not great.  50% down is a ton.  6% is 50% above market rates with that much down.  Is this an appreciation play or is there something special about this particular house?  I'm not much for speculation, so I would pass unless the down payment can be reduced to more like 10-15% AND it's not on a land contract.

Diggin' the signature @Esaul Viramontes!

Esaul Viramontes · Answer

Single family home. Owner is from out of state and get the feeling he's tired of being a landlord.....I like the idea of having payed off in 10 years

Bret Lamprey · Answer

How many units/doors?