Posted by Edward on March 27, 2000 at 18:00:53:
You would need to re-finance down the road. With that $75.00 cashflow, have you figured in expenses like insurance, taxes, repairs, vacancies? It sounds like you are buying an alligator. Find a deal with better terms and cash flow as you aren’t even getting a good price on this. My rule of thumb is: excellent terms = close to seller’s price (but only if it cash flows); no terms or bad terms = I only pay 50 - 60% of FMV. This isn’t a good deal by any of those. I would pass on it.