Possible Owner Financed Duplex
I have a seller willing to owner finance a duplex for me. He wants $10,000 down, and will finance the balance of $59,000 at 5.5% amoratized 30 years with a balloon of 2 years. The owner pays utilities to the tune of about $175 a month. Taxes are another $130 a month. It generates rent of $1000 a month. My $10,000 down will come from a home equity line at 8.5%. Does this seem like a good deal for me? The rents are about as high as they come around here for a property under $100k. The building is older and I dont see it apprecating much. It would be mostly for cash flow, assuming there would be any. Thanks.
i would do it... 716 for cost, 1000 rent= 284 a month, 3,408 a month without using any money down. free money right?
i am not a land lord though...[ Edited by loandudefromsac on Date 05/18/2007 ]
Still, how do you plan on collecting rent? Answering the plumbing problem call? If you want to do it yourself, then see if you can have a lock box on the door for people to view. Maybe you realtor can help and you can give her a gift. What part of FL is it in?
I think it will be VERY challenging to manage this long distance. Hire a good local property manager - you will most likely get more then your moneys worth.