Posted by JohnBoy on November 27, 2000 at 19:49:20:
WHERE is the deal???
You put down 15% which would be $18k of YOUR money and finance $102k. You don’t say what the rate is, only .125% lower than lender?
Assuming 8.75% interest over 30 years, that puts you at $802.43 principle and interest only.
$ 55.00 HOA
$ 40.00 Insurance
$1,032.18 per month!
$1,032.18 - $986 rent = $46.18 NEGATIVE CASH FLOW and that’s with YOU tying up $18k of your money to buy yourself a negative cash flow!!!
Then subtract for maintenance and repairs, deferred maintenance, vacancy on top of the negative cash flow!
There is NO deal here!
Offer $80k! That might put you in the ballpark.