in a REALLY, REALLY bad cashflow crunch…HELP! - Posted by Redd
Posted by Redd on May 30, 2007 at 10:03:02:
I bought (2) 2-Fam houses from a wholesaler about 2 months ago. Houses are side-by-side. At the time, the numbers looked good and they still do but I am running out of cash.
Here are the numbers:
Total debt: $163,500
monthly debt service: $1,431.61
current income: $800 (2nd Flr. apt.)
This is a 2-fam house with 1 rehabbed vacant apt. The other unit is on a MTM lease. Tenant is on S8. Both apts. could rent for $1K per apt.
Total debt: $185,500
monthly debt service: $1,338.09
current income: $780 (2nd Flr apt.)
This is a 2-fam house with 1 rehabbed vacant apt. The other unit is on a MTM lease. Tenant is on S8. Both apts. could rent for $1K per apt. I have a $20K construction loan attached to this house. I used this money to both rehab both properties.
After June mortgages are paid, I will have $1,846.99 left*
Original exit strategy:
Refinance HOUSE 1 and pay off contruction loan attached to HOUSE 2. After refinancing House 1, sell it and keep HOUSE 2. We would fill the vacant apt for HOUSE 2 and raise the rent for the other apt. Both apts. would rent for $1K each.
This is not looking good. Please advise.