Possible First Deal
I just wanted to get some feed back from alla of you. I was out looking for places today and i ran across a super nice duplex. It was its first day on the market and the asking price is 400,000 both sides are rented out for a total rent of 2200. I dont have allot of cash to mess with (only 5 grand) and im having trouble finding any financing for such a large loan amount.
I was wondering, do you think 400,000 is to much for a first deal? If i got a partner ( which i have the option to do) to share a loan would that be bennifical? Any thoughts would be great
Thanks
Personally I think paying $400,000 for a duplex that only brings in $2200 in rent a month is way too expensive. How in the world are you going to get that to cash flow?
[addsig]
I would start in a lower price range. When you move up to a higher range you will need to be more careful. You will need to get more of a discount. Everything is going to cost more including vacant rentals. Of course you will have to pay the mortgage while you fix the damage from the last tenant and get the new tenant in. :-?
[addsig]
You are committing REI suicide with that deal. Often new investors make the mistake of looking to buy properties that are;
1. Similar to theirs
2. With tenants that are similar to themselves
3. That will take as good or better care of the property then they would
Sounds like you are doing just that. You don’t have to live in the place yourself. If I were you, I would do a smaller purchase.
Owner Financing... Ask the current owner if he/she/they will hold a note for some or all of the remaining sales price...
Good Luck!
[addsig]
Thanks - is there any norm on the typical terms the seller would want - interest rate, number of years, etc.?