I would - Posted by B.L.Renfrow
Posted by B.L.Renfrow on September 06, 2003 at 11:02:54:
I agree the numbers aren’t spectacular, but I think it’s good enough, since you have both cash AND a tenant in reserve.
The high interest on the existing financing is really irrelevant at this point, since you can get adequate cash flow regardless.
Now, if you were a newbie with no cash, no credit and no experience proposing this as your first deal, I’d say no way in he**. But given your situation, it sounds fine.
However, I definitely would try to get a L/O tenant-buyer in the place, to recoup some of the $6k you have to pay to the seller and improve your monthly cash flow. But even if you can’t find a T/Ber, you’ll still be OK with a regular tenant if your numbers are accurate.
The only thing that might make me think twice about this deal would be if your market is down and you’re not confident you could find another qualified T/Ber or renter right away if the one you have in mind doesn’t work out or goes elsewhere. Obviously, you could afford the holding costs, but after a couple months or more, they would start to get pretty painful.