# Help with Deal - Posted by Art Montano

Posted by Irwin on April 18, 1999 at 20:59:15:

The fact that the man paid \$62k in '92 and is now trying to unload it for \$50 should tell you something-like this is probably the worst deal you could ever make. First of all \$525 from a Sec.8 (welfare) tenant, barely pays the mortgage. You can’t imagine how much wear & tear Section 8 tenants (or any tenant for that matter) can inflict on a house.
Put the calculator back in the box until you learn some basics of owning and operating rental property. Just looking at numbers will get you into trouble.

Help with Deal - Posted by Art Montano

Posted by Art Montano on April 18, 1999 at 19:56:25:

I am making an offer that looks like this. Here’s the senerio: Seller wants- 50000
5000 dn
45000 bal

Their payments are 440mo

I offer 45000
2000 dn
43000 bal 7% 30yrs 279.43mo
6yr balloon
Since seller pays 440mo. I’m thinking of adding 160.57mo making total payment 440mo. This 160.57 is to accumulate for six years and deducted from principal amount. Problem is I have a new financial calculator (which I can’t figure out) that brought no instructions, so I’m lost. What I’m trying to figure is how much would the principle be at six years? 160.57x60=9634.20 9634.20 deducted from principle would = ?

The house is occupied by section 8 tennants which pay 525mo. House sold in 7/92 for 62,180.

Is this a good deal since I have no experiace with section 8 tennants?

Thanks for your help, Art

Re: The Numbers - Posted by DanM(OR)

Posted by DanM(OR) on April 19, 1999 at 09:44:10:

Art,

Good luck with the deal if you choose to go for it.

Here are the numbers:

N=72
I=7%
PMT=-\$440
PV=\$43,000
FV=?=-26133.72

Best of luck!

Dan Matejsek

Re: Help with Deal - Posted by Bev

Posted by Bev on April 19, 1999 at 08:59:14:

Try this online mortgage calculator:

www.ewmortgage.com/mortgage/

Re: Help with Deal - Posted by David Alexander

Posted by David Alexander on April 18, 1999 at 23:10:21:

Doesn’t look like there’s any money to be made on the cash flow because there is no room for maitenance etc.
I have a similar property that I bought as a rental, I keep waiting for the tenant to move out, so I can sell, cringing every night before I go to bed hoping nothing goes out before I sell and carry the paper.(Then again I’m a chicken when it comes to tenants and toilets, and I like the fact that if someone asked me for a resume it would say “I HAVE NO JOB”.

So with that said, what is the FMV currently, not from 2 years ago. Does it need work. Can you get the tenants out and sell immediately to make a profit.

You make your money going in.

David Alexander

Re: Help with Deal - Posted by Bill Taylor

Posted by Bill Taylor on April 18, 1999 at 21:43:49: