Found Quad To Buy And Have The Credit To Buy
Ok I found a nice quad for 130, 000.
The rent is 450 per person currently living in the building with all the rooms rented out. How should I go about this?
Do I contact the real estate agent and let her know first?
Where should I go for a loan first?
Anything i need to be weary about ?
Tips, advice, and steps needed.
The first step now that you have a starting price is to determine how much it would cost for you to borrow the money it takes to finance this place a monthly basis. (unless you are doing seller financing)
This will show you what your gross monthly cash flow is and then you can determine if it is worth the hassle of investing in, although on the surface it sounds like it should cash flow in the range of about $500 - $650 per month.
Hope this helps.
Be sure to get an inspection and try and get the sellers to cover as much of the repairs as possible and/or see if they can pay part of your closing costs or finance the closing costs into the loan. Lastly do your own research to make sure that $450 a month is the market rate for renting in that area and not something much lower, as this will be helpful to know if you ever did have a vacancy because you would have a firm knowledge of what the market rents are in the area.
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