Updated about 8 years ago on . Most recent reply
Potential Real Estate Deal
I have a deal that could start my venture in real estate investment that I love, but I'm not quite sure if it's good or not and would like some help from some gurus here at Bigger Pocket.
Details:
PROPERTY(S): 5 Residential Units / 1 Commercial
PURCHASE PRICE: $575,000
Loan Amount: $427,500 ($402,500 Rehab holdback + $25,000 toward Rehab Cost)
EXPENSE DEPOSIT: $3,995
Value at Least: $625,000
Origination: 4% of loan amount – Paid at closing
LOAN TERM: 12 months w/ 6-month ext
TITLE INSURANCE: PAID BY BORROWER
Amortization: Self
INTEREST RATE: 10.99%
I/O LOAN: $3,912
The property cash flows $7,315 and my expenses would be $6,509.08 = $805.92 (income)
FYI: RE-FI would be 5% either on a 15 yr or 30 yr loan
I have to come up with $172,500 as well as $17,100 for closing & $3,995 Expense Deposit = $193,595
If I can have a second pair of eyes on this deal to help me with any concerns that I may not see. Thanks!
PM for any questions.