Posted by Tbrock on November 14, 1999 at 21:18:35:
This is my first deal. It is an investment that I would like to buy and hold for the long run. It will also be my principal residence. The property has a 2-bdrm home that sits on 1&3/4 acres. It also has a new 1-bdrm guest cottage that is currently used as an occassional bed & breakfast rental. Best of all, it is located in rural Alaska, population 450 people, complete with moose, bear, and world class salmon fishing. The owner is asking $125k with $75k in cash and he’ll carry 50k at %6 interest.
What I would like to do is:
Bank loan of 100K at %7 for 30 years
Seller note of 25k at 6% till paid
The bank figures PI& misc to equal a house note of $680/monthly for 30 years.
The house gets $750/month.
The cottage could get $600/month.
This seems to be good cash flow. Here’s my question and problem. After paying the downpayment & closing, I’ll have no savings for emergencies, etc. until the property is going for about 3 months. How can I get some money back at the closing from the seller (2-4 grand) to use as a safety cushion until I can build up my savings again. Any and all advice would be appreciated. Thank you in advance. tbsr@aol.com