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.
I can get the deed for $1100.00
Payments are $445
Balance $43,234
Interest Rate 11.9
149 Payments to GO
Balloon after 149 payments
Comps $47 to $52K
Needs paint inside and another day’s worth of touch up.
She’ll sign the deed over and I get the payments.
Is this a good deal??? I’m following Bronchick’s Cash Cow examples.
Because the interest rate is high you may have trouble finding a buyer willing to make that high a payment. But, you should try. With the deed you might get 4K down and $550 a month. On a short term you could even get less payment if they can refi in a year. It is not one you spend a lot of time or resources to do. Unless there is nothing else going on.