Still On The Fence - Push Me Off!
I've been evaluating a 3 unit investment property near my home town. THe property has a positive cash flow, with an adjustable rate mortgage. (don't say it - I know - and I am ok with the loan!)
It makes sense from every angle - problem is I keep asking myself - if this the right time to buy? I still have credit cards to pay off, a bank account to feed, etc....etc.... and what if the property needs a roof next year? I keep talking myself out of it but it is a great deal. My offer is 80% financing with the seller holding 20% for 90 days - (I have a HELOC approved already) and getting a 3% credit back at settlement so it would be a no money down deal.
Why can't I get off the fence??????
It's something you have to make a personal choice on....
For me, I purchased a house for a quick sale, had 20K in debt and down to my last $200 with my mortgage coming up....Then as the sale came through, we profited 39K from the sale of the property, paid off all bills and had plenty left for taxes and extras. It was the scariest thing I ever did, but the smartest thing in the long run (only a month and a half later).
You need to find your comfort zone and balance. Get a home inspection and a roof certification. It may make you feel a lot better. If there is a positive cash flow, go for it, or partner up with someone.
Good Luck.
Thanks and you are right - comfort and balance are key. With that - right now I am focusing on multi-family homes. I am looking for positive monthly cash flow and I'd like to get to the point where I have positive cash flow of 5K per month. Perhaps what I need to look at is, if I do a few flips or get in on a good foreclosire deal, I may feel better about the multi's because I'll have 20K in the bank. (or so)
Am I on the right track?
I would think you need to get OUT of your comfort zone. Still do your homework and if it looks like a good deal then DO IT. Im a believer in, at SOME point you need to put 'rubber to the road'
Just a thot
Joe
"There is more money lost because of indesicion then because of wrong decision."
If everything fits your investment criteria and you have checked off your due diligence list then PULL THE TRIGGER!
if you have done your home work and the property is "pos" then "bust a move" you can write in "escape clauses" so that at any time it doesn't feel right you can back away. it will give you a chance to get closer to the close and see if there is anything hidden or not quite up to your requirements. make sure you can financailly withstand a crisis. expect the unexpected. keep "murphys law" in mind. "whatever can happen will happen." i personelly would and did buy res. property first i was more comfortable with the purchase but thats me.....good luck kenmax
There is more money lost because of indesicion then because of wrong decision."
Sometimes, you just gotta do it - close your eyes, hold your nose and jump in. I am in the car business - without fail, every deal we hmmd and hawed on because we were not sure what the car would do, someone came along, snapped it up and the car did a rocket shot at the auction or on eBay. We stopped hesitating REAL fast.
Camella Soprano, Whitetides