Two properties in Memphis already rented, but how do I fund it?
I'm looking at two rental properties in Memphis, TN that I think are a pretty good deal. I'm wording if it's really a good deal and how to fund it.
The two properties are rented for $725 each, one with tenants who have been there for a number of years. They have been professionally managed for years and the owner is an architect.
I think the two properties are worth worth $60-$65 each, combined of $120K. The owner wants to sell, pay off his loans, and bring nothing to the close table. The loans total around $72,000. So I think I can payoff the loans and cover closing costs for less than $80K.
First question, is this a good deal? Using the general rules of thumb, the rent hits the 8% rule and the properties are about %67 of value.
Second question, I normally wholesale but if possible, I'd like to hold on to these two. I have a couple grand from wholesaling activities saved up. Is there a way to find this deal without having to come much out of pocket?