All Forum Posts by: David Fontaine

Thank you for your reply. I have not even done my first RE deal so I didn't know what interest rate I would be facing, seeing as I won't be living in any of them. I originally figured it would be around 3.5% but then I read an article attached to the deal analysis that stated some lenders charge up to 3% more on investments than they would for someone buying a home to live in. So with 3.5 + 3 I just rounded up to 7. Also, the vacancy rate definitely is high because I wanted to be certain I would be able to make the payments without a problem if it became necessary. From what I can tell, at least 5 out of 8 units are currently rented. 

Honestly, when I first saw this deal, I only saw one of the duplexes was for sale and had started looking into it. But when I called about it that's when I found out all 4 duplexes are being sold. They're $129,000 each but he would prefer all properties to be sold together. That being said, unless I can find creative financing I don't have much confidence I would be able to get it anyway because I only have $5,000 in liquid capital at this point. So, I guess this analysis is just for practice anyway.

View report

*This link comes directly from our calculators, based on information input by the member who posted.