First Real Estate Deal

[Andrew Martin]

Hello BP,

I am new to investing and would like some advice on my first few deals.

Deal 1-

Buying a single family home all cash deal for 18,500. Rent on this home is 750 dollars; the area is more geared towards section 8 renters. The relative comps in the area are for 30 to 35k for a single family home. I am going to do a cash out refi with a local bank as soon as I can so I can cash out and use the money for other deals. The one thing is that this property is a few hours away from me. What do you think of this deal and the best way to manage the house since I am so far away?

Price - 18500
Total Taxes annual- 1852
Insurance annual - 525
Renter pays electric, water and gas

Deal 2

I am in talks to buy a 5 family home owner financed for 61k. I would put 5k down and the seller will hold a note for 56k for 5 years at 5% at a 20 year amortization rate with a balloon payment at the end of 5 years.

What would be the best way to pay the seller at the end of the 5 years or earlier? Also is there anything I need to look out for so a bank will refi the property so I can pay the owner out?

Price - 61k
Owner Financed- 5K down
Note- 56k at 5% for 5 years with 20 year amortization rate
Rent for each apartment - 425
Taxes annual - 5300
Insurance -1000
Water/Sewer - 120 a month
Renters pay electric and gas

Any advice would be helpful

Best regards

Drew