Posted by Steve (NY) on February 09, 2000 at 20:17:22:
Dwayne,
Are you sure that you’ll have a positive cash flow? Have you figured in vacancy, maintainance, taxes, insurance? Who pays the utilities? That rent sounds low for the price of the house.
Also have you looked at comps in your area? This guy sounds a little to generous to me. Discounting the note 20K and giving you 3K to buy the house. Something doen’t add up.
-Steve
$3K to me if I buy his house - Posted by Dwayne R (VA)
Posted by Dwayne R (VA) on February 08, 2000 at 20:29:17:
I am newbie and we have been searching for our first deal. We ran across a deal on a rehabbed duplex. Here are the numbers: Total sale $ of $100k, we get a 75% LTV and he would carry a second of $25k but if we pay it off within 2 years he would discount to $5k. So actually it would be an $80k deal. Doesn’t that bad cause the rents will be $620 each unit, so there’s pos cash flow. However he said that if we buy he has $3000 that he would give us or anyone else who buys it.He is an investor hisself and he also has a realtors liscense.
It just sounds a little fishy to me that he will give someone money to buy the house. Plus don’t think that the appraisal will come back to support his numbers.
I would appreciate any help on this.
Re: $3K to me if I buy his house - Posted by Freddie Williams
Posted by Freddie Williams on February 10, 2000 at 20:18:50:
Hello, I came across your ad and would suggest to see the appraisal , or better yet talk to a mortgage broker (which you would have too anyway to get a mortgage for it) and ask him to see what the appraised value would be and to show you the figures such as mortgage payment, taxes, insurance. That whay you have all the figues in front of you. ( which should be easy because I am a Mortgage Broker myself. ) and inregards to him discounting the second mortgage that at times is common practice because being in 2nd position is a gamble anyway because if you default the only recourse he has is to file judgement so investors ( or rehabbers ) perfer to just sell the property and get their invested money out of the deal anyway. Also with the investors that I work with, most of the time I findout that they have a short term mortgage ( which they took out to rehad the property ) and if they do not pay this short term mortgage off the property will be forclosed on anyway and they lost their money in the deal , so please do not be discouraged because he is willing to give you $5,000 cash back. Believe it or not there are deals such as this one out there !!! Take advantage when you can !!! Also Im in Virginia as well. Good luck !!!