My First Seller Financing Deal - Help!!
Hello Everyone!
I currently own 2 investment properties that are SFH.
I am looking at buying a 4plex and the numbers are as followed based on what my Realtor said. It is a gated community with a playground and pool.
HOA is $6180 a year ( It covers insurance, water, sewer, a guard post)
Repairs/Maintenance is $500 a year
Property tax is $1527 a year.
Current rents are $650 for each 2bedroom 1 bath. Each property has washer/dryer hook up.
Rentometer.com says that a 2 bedroom should go for around $717 a month on average with a median at $747.
its 100% fiananced ( however I could money down) at 30 years. 5.5% interest rate.
Asking price is $300k but my realtor says I should make an offer of $250,000 I am wondering if I should make an offer of $230,000.
After 2 years I would have to refianace out or it turns into a balloon payment ( balance remaining at target date)
based on the 50% rule
$2600 monthly income
- $1300.00 50% for expenses
-$1,193.91 for monthly payment
$106 cash flow
With using the Calculator
Income: $2600
-$130 5% Vacancy
-$130%5 Cap Exe
0% self management
-$52 2% Maintenance ( based on what the pro-forma says)
-$500 HOA
-$127.25 Property Tax
-$1,193.91 for monthly payment
$466.84 Monthly Cash Flow