Is It Worth It?

I am looking at buying my first prop. It is a townhouse type, no association fees. Built in 1982, 3/1, Asking price is $54,900. An old lady lived in the house and it looks just like it did when she moved in. The question after I pay debt service, taxes, water sewer & trash, etc I will cash flow around $100-$150 a month. Is this o.k.? The mortgage is getting paid, I am not getting rich, but someone else is buying me this house. Thoughts and opinions... smile


Also thoughts on buying a house with a tenant already in place... Good or bad?

Comments(3)

  • ejm414th August, 2005

    Thanks for the info, I guess it all depends on how much of a rate of return I am looking for.

  • Financier22nd August, 2005

    What was it that attracted you to trying to invest in real estate?
    [addsig]

  • bgrossnickle23rd August, 2005

    Each state might be different, but the security deposit should go to the new owner. It should be on the HUD statement. You should also sign an assignment of lease.

    I would not think that you could subtract the loss of rent from the security deposit. But whether you should get compensated for your loss of 1/2 rent from the new owner or not is negotiable. I have had it both ways when I bought rental units.

    If there is a good chance that the tenant might pay it, then you should get the 1/2 month rent owed on the HUD at closing. If there is not a good chance that the tenant will not pay, then you should not get reimbursed for a lousy tenant that you placed in the unit.

    Brenda

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