Have A Deal! Need Help!
First, I would like to say thanks you for all the great articles and forums you guys post on the site. They are filled with great information. I'm new to REI and currently in the process of agreeing on the terms of purchase of two mobile parks. The sellers bought the properties three years ago for $245k cash. Agreed on $250k with $160k at closing. The sellers need cash for new home. They are willing to finance the balance of $90k at 8% for 15 years. After expenses the N.O.I will be $2316 a month. I need help with the closing cost and have a little damaged credit. Is this a good deal or am I getting in over my head.
Thanks in advance for your suggestions and comments.
bernie71,
"I'm new to REI and currently in the process of agreeing on the terms of purchase of two mobile parks. The sellers bought the properties three years ago for $245k cash. Agreed on $250k with $160k at closing."
If what I am reading is...YOU are putting down 64%....RIGHT!!??
"The sellers need cash for new home. They are willing to finance the balance of $90k at 8% for 15 years. After expenses the N.O.I will be $2316 a month."
...and that's 17% ROI...Right!!??
"I need help with the closing cost and have a little damaged credit."
With THAT MUCH DOWN....have the sellers help with TheClosing...
"Is this a good deal or am I getting in over my head."
Getting over YOUR head is up to YOU...
...17% is NOT GOOD FOR ME...
17% Return in the BANK with no strings...OK.....
....but 17% with ALL the headaches of RENTERS...
I CAN DO WITHOUT!!
....as always,
GoodInvesting, Rocky