Looking At This Deal?
i am looking at this deal and i dont know whether to jump on it or not.
It is listed at 425000 but i believe I can get in down to 400000- the neigboring house is worth about 435,000. This house has been on the market abit and needs some work.
Dimensions- it is a legal 2 family but the basement can be turned into a an apartment. I dont own a home now so I would like to buy a 2 family with a basement where I can stay in the basement and then rent out the 2 floors.
The numbers are as follows
asking 425000
might offer 400000
rents can be 1650 * 2
expenses - 40000 for basement
is it a deal worth doing
If the comps in the area are going for
$435,000 and you can pick it up for
$400,000 sounds like a decent deal.
This is assuming there is not any major
rehab to do.
If it is listed with a realtor, why dont you go straight to the listing agent for an even
better deal or find a broker who will kick you back some of their commission towards closing cost.
Again. I would have to look at comps in the area and determine how much fix-up is involved. I dont know what your cash
flow is, but you could also do an interest
only loan and have a very cheap mortgage payment with immediate cash flow. You will have the tax write-off
and appreciation. The downside is you will not be able to pay down the principal, however there are loans out there now that give you the option of
paying an interest only payment or a regular payment. You might want to ask
Tinman, she probably has more information on these type of loans.
Just some food for thought.
Best Riches,
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 03/10/2004 ]