First Deal - Suggestions? - Posted by Russell
Posted by Russell on February 14, 2000 at 24:31:02:
I’m running some numbers to see if this might make sense. I am inexperienced, but I have to get my feet wet some time - just don’t know if now is the time. Here’s what I know so far:
Seller getting anxious - going to be transferred out of state. Contract just fell through with other buyer.
Excellent 3 1/2 year old, brick, 3-2-2, landscaped
Inspection: no needed repairs/no termites/good foundation (information courtesy of previous contract)
Nice developing neighborhood of new homes near large corporations - walking distance to good schools.
Per phone call, quoted $93,000 - “… but we’ll negotiate even more.”
FHA qualifying assumable at 7.5% ($879 PITI), I can qualify.
Loan balance $84,000
Rents in area $1100 - $1200.
Seller has contract on other house and needs $4000 cash, otherwise seems open to taking a note (said he doesn’t really understand how it works, but no objection at this point).
I can get the $4000, but of course would like to hold on to as much as I can. I’m going to research today to see what the transaction costs will be (lender’s assumption fees, title company, closing, etc.). I only have my previous two plain vanilla home purchases as any indicator of closing costs, which weren’t cheap.
Any advice/suggestions from you vets would be appreciated.