Is there a deal here? - Posted by Roland

Real Estate Investing
1

Posted by WilliamGA on May 23, 2000 at 20:52:25:

Roland,

When you are calculating cash flow, you need to consider things like a vacancy factor and repairs. Not knowing your area, I would plug in 10% for vacancy. Add to that 50 to 75 bucks a month for repairs(again, I do not know things like how old the house is or how much deferred maint. there is. The figure could be higher but I wouldn’t count on it being less)and I come up with a negative 20 to 40 bucks a month.

There are many things to consider besides just your monthly payment and the amount you can rent it for, Roland.

Talk to the owner and find out what he needs. There may be a way to work out a deal that will give you positive cash flow here, just make sure you consider all the elements.

Good Luck!

WilliamGA

2

Is there a deal here? - Posted by Roland

Posted by Roland on May 23, 2000 at 17:54:11:

I found a FSBO SFH 3br/2bath Sale price $89k currently rented out at $875 per month. Owner wants to go to Florida that is reason for selling. Owner has a mortgage of 40K on the property. If I bought this property for $79k the P&I&T would be $750 with a positive cash flow. I have very liitle experience ut something tells me there’s probably a very creative way of putting a deal together here. I’m looking for all the advice and possible creative solutions I can get. Thanks in advance.