Good Deal Or Bad Deal
I am thinking of buying a 3 bedroom 2 bath. I am mortaging 80% and having the seller finance the remaing 20%. Sell price is 142,900. I am paying the seller 150.00 a month for 10 years with 100 going to interest and 50 towards principle. I will cash him out at the end of 10 yrs. I can rent the home for about 1,200.00 a month. My mortgage, taxes, insurance, and payment to seller comesto about 1,000.00. Is this a good deal? It will be my first investment purchase.. The home is in good shape and properties in the area have been appreciating about 4-6% a year. Thanks in advance[ Edited by boysoniodine on Date 06/20/2005 ]
due to non cash charges (depreciation), and other deductions, what is the net affect after figuring in the income tax effect.
There is no hold requirement in Georgia (or in any state of which I am aware), and that broker sounds like an idiot. Enough said.
[addsig]
Hi, Benebuck
Many investors prefer buying occupied investments. Some will pay good prices if property values are increasing and tenants are stable and the area is good.
I think a poll asked that question recently on this site.
It is hard to find context in your post. Foreclosure sales are done with cash or cash equivalents at the time of the sale or very shortly after. Unless you are borrowing from Uncle Harry to buy the property at the sale and pay him back after you flip, how do you do no money down? I have attended sales with a line of credit secured by stocks, so these are no money down (at least not my money). Is this what you are thinking of?
You could probably do something close. However, you could do this in almost any situation where there is a financially distressed property. The time right before foreclosure can get rather hectic without the complication of finding a buyer ready to step in, setting up a double closing, etc. In addition, there may be money needed to postpone foreclosure.