Help newbie - take this deal or leave it?
Hello BP members,
I am a newbie and have found a potential property in Birmingham, AL. This will be my first if I choose to proceed.
As far as I can tell the numbers look right from my calucations. Asking price is 33 K. House is presently rented to a section 58 lady so there is a steady check and she faithfully pays the difference of $200. The rent is $700.00. My issue is that the seller (FSBO) wants to sell quick and changed his mind from financing to cash only offer. I do have the funds though this was not my original plan. Looking at other properties this appears to be a great deal. I also like the fact that there is a section 8 renter whom I have met, keeps property in good condition and has no plans of moving soon.
My question is am I putting too much down for a starter. My thinking is I can utilize the cash out strategy down the road and move on to other properties without being tied down for using a big chunk of my capital. Thoughts please? Are there factors I am not considering if I go all cash on this deal?