# Help me evaluate this deal! - Posted by SG

Posted by Nate on March 22, 2001 at 12:38:24:

Go back and re-read your first sentence carefully. It sounds like the family is fixing up old Gramps to sell him!

(Not to be the grammar police…just got a laugh out of it.)

Anyway…

If you have \$9200 for a down payment and the family is really willing to let it go for \$92000 to you, you may be onto something. One thing you forgot is that you will have operating expenses during the year you are leasing the property out, before it is sold, and those need to be subtracted. You also will have to pay closing costs when you buy the house and again when you sell it. Make sure those are factored into your equation.

NT

Help me evaluate this deal! - Posted by SG

Posted by SG on March 22, 2001 at 12:04:29:

Purchase Price of \$92,000
\$4000 back at closing for Repairs

One year Lease Purchase Option for \$112,000
\$4000 down with \$600/mo.
with \$100/mo Rent Credit

Rent the upstairs on a one year lease at \$500/mo

Get loan in the amount of \$82,800 @ 6.5% = \$523.30/mo
Insurance = \$125/mo
Tax = \$125/mo
Points 2 = \$1656
Total = \$523.30+\$125+\$125 = \$773.30/mo

Initial and one yr expense and debits
Down Payment \$9,200
Mortgage \$773.30/mo x 12= \$9279.60
Rent Credit \$100/mo x 12 = \$1200
Repairs \$2000
Points 2.00 = \$1656
Total Expenses = \$23335.60

Initial and one yr income
Cash Back for Repairs \$2000
down payment \$4000
Rent \$1100/mo x 12 = \$13,200
Difference \$112000 - \$82800 = \$29200.00
Total Income =\$48400.00

Money Made \$48400.00 - \$23335.60 = \$25064.4