All Forum Posts by: Carol Osman

@Tunde Mendes there’s an ongoing conversation on Sales Price. We will see if Seller budges.

@Mark Welch

Returns:

NOA $18,480

CoC 11.30%

Pro forma cap 7.39%

Purchase cap 7.39%

50% Rule:

Total monthly $2,400

50% expenses $1,200

Monthly P&I $1,012

50% rule cash flow $187

@Osvaldo Benavides Houston and South Texas

Thank you for that Diane I appreciate it, moving on to the next property.

Hi everyone,

Looking for some help or direction on our first investment property, specifically with the seller finance balloon option vs traditional financing, thank you!

Below are the details: 

• 4 Unit Multi Family asking $249,000 
• $500 Rent Per Unit = $2000 Rental Income (all original tenants occupied since 2007)
• Asking Price = $249,000
• Minor Cosmetic to $0 Rehab
• Potential Rental Income in the area = $600 to $700 per month
• BiggerPockets Rental Calculator AS IS:

Monthly cash flow -$203 /mo

Income -$2,000 /mo

Expenses -$1,796 /mo

CoC ROI - 4.35%

Seller Financing option: 

• Balloon Payment - 20% down for 2 Year Terms @ 7% interest

We believe we can bring the rent to $650/unit within the first 2 months. 

What should we be considering with our financing options ? Any help is greatly appreciated!