Is two deals at once too much? - Posted by Ivan

Real Estate Investing Real Estate Gurus
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Posted by Ronald * Starr(in No CA) on August 09, 2003 at 11:44:10:

Ivan------------------

Probably not. But two posts of the same question on two different forums probably are. In my view.

Good InvestingRon Starr********

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Is two deals at once too much? - Posted by Ivan

Posted by Ivan on August 09, 2003 at 10:39:54:

I posted this in the main group as well.

I’m a newbie though I’m very informed after spending over a year reading hundreds of articles and posts on this site. Now I have an opportuniy to purchase two properties a 2-unit and 3-unit both fully rented and one is section-8 with longterm tenants (over 3 years).

I received 70% financing for one property through a mortgage broker with the seller holding a second. Broker doesn’t care where the other 30% comes from. I’ve come to find that the other seller is also willing to hold a second upto 30%. The numbers are good and positive cash flow is over $200 a month for each property. Cap rate is 8% on one and 9% on the other.

My question is should I try to get another 70% mortgage and do both deals. I’m confident that I could handle it but I guess I just need some assurances and some feedback.

Thanks.

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Re: Is two deals at once too much? - Posted by Willie

Posted by Willie on August 16, 2003 at 20:42:32:

There must be something not quite up to snuff, your cap rates are a bit low. Will the income give you a good positive cash flow after considering the mortgage payments, insurance, taxes, maintenance and vancies? What are these figures?