2 Condo deal needing creativity! - Posted by Jim O (DE)

Posted by Jim O (DE) on January 26, 1999 at 19:34:54:

First, Thanks to all who share their valuable knowledge everyday here!
The deal goes as so:
2-2Bd, 1.5 Ba both rented with leases (tenants seem nice)
Total rent=1015
Condo Fee 186(both) includes water, sewer, trash, insurance, outside maintenance
Taxes 600 both
Leaves $865 for mortgage and cash flow

Haven’t done comps yet but the price seems low. I own two multifamily properties already so I think I have a grasp on Maintenance cost etc.

I think I could do OK here, now the problem, Money!!
The owner said he could take a second for some of his equity. So I figured borrow at 65 or so LTV, let him hold a second for the rest and finance in closing cost. He says he wants 25% of what he holds down. I tell him he will get about 35-40K at closing and he says he wants me to have money in the deal so I don’t walk away.
I have 30K in equity in one property and not much in the other. I can’t refi because I owned them both less that a year. My wife and I have perfect credit but I close on a SFH on Feb 26 (to live in) and if I screw that up trying to buy these my wife will kill me, so I’m leary to go to a bank try to borrow money.
Thanks for reading and any responses are sincerly appreciated. Jim O (DE)