First-timer asking for advice - Posted by Jason McGhinnis

Posted by JohnWe (NoCA) on June 09, 2000 at 21:21:15:

Here’s one scenario that might work.

See if the guy will take $45K. If so, his equity will by $11K. A quick way to get around interest payments is to offer say, “I’ll pay you $110 for 100 months”. It doesn’t really matter what the terms are as you’ll soon see.

Then, sell it on a wrap for $55K owner financing, with 20% down. This is $11K, which you will use to pay off the seller. The balance to be financed is $44K at 11% interest for 30 yrs. The payment to you would be $419.

This would leave you a negative cash flow of $3 a month, but at the end of 20 years, you collect the full $419.02 per month for another 10 years (the underlying loan will be paid off).

Something to think about.

Of course you could just rent it out. If the guy goes for $45K, and the $110 a month for 100 months, then your total payment is $522. If you could rent it for $622, that’s about $100 / mo cash flow, but you have to watch out for unseen expenses, plus all the other fun stuff that goes with landlording.

Good luck!

First-timer asking for advice - Posted by Jason McGhinnis

Posted by Jason McGhinnis on June 08, 2000 at 11:57:41:

I’ve been an avid reader of this site for some time, and I’m trying to put some of the information to use. There is a townhome in my area which has a non-qualifying assumable mortgage. I’ve spoken to the owner a couple of times, and here is what I know:

The loan is a 30-year, 9% fixed interest with about 20 years and $34,000 remaining. PITI is about $422/month.

The seller is asking $49,500 which about the max for these townhomes (There are several in this area). I’ve not yet seen it, but I’m told the carpet has just been replaced, etc. and that’s in good shape (I intend to verify this soon).

The seller is moving to California, which is the basis for the sale. He has said the price is negotiable and that some financing of the equity (?) is possible.

I would like to “flip” this property if possible; otherwise I may want to keep it as a rental (I live in a college town). Does this seem realistic? How should I proceed?

Any advice would be greatly appreciated.


Greenville, NC

What could you rent it for? (NT) - Posted by JohnWe (NoCA)

Posted by JohnWe (NoCA) on June 08, 2000 at 21:02:17:


Re: What could you rent it for?—Between $600-$650/month (nm) - Posted by Jason

Posted by Jason on June 09, 2000 at 10:59:30: