Posted by Sean on May 06, 1999 at 11:05:39:
First of all your net operating income is more like $43,500. This will give you an 8.8 percent capitalization rate. This is excellent for my area, but your area may be different.
Have the seller create a second mortgage which will be sold to create the down payment money he’ll need. You will give him a wraparound mortgage or an all inclusive trust deed in the amount of the purchase price. Aim to get payments less than $4,000 a month and an interest rate less than 8 percent and you should do fine on this deal.