Price VS Terms

[Jeffrey Johnson]

I would like to hear a good discussion on Price VS Terms. Now, first off I am a big Fan of the the buying at a huge discount for cash flow. I have read enough posts by MikeOH on this.

Now I know these types of deals are hard to find and take lots of work. So I am unsure when just getting started and holding down a full time job to make sure the family has food that this is the best approch. It maybe, and it just may take longer to get going. But what about the terms of a deal.

say a seller wanted 100k for their SFH. For this to truely cash flow you would probably need to pay 70k for it. This would be great.

Ok, now because I am really new and am still trying to figure out all this stuff out I am going to throw some numbers up that may not be the way everything works, so please correct me if I am way off base.

Example 1: I get the house for 70k and say I can get the loan for the total amount I would have payments at 585 a month for 20 years at 8%

Example 2: I by at retail for 100k I get a 20k loan at 8% and I can get the seller to carry the second mortgage of 80k at 4% for 30 years. for a payment of 548 a month. Just added 37 bucks to my cashflow.

Now I understand to get this deal it may take alot of work as well and will only be under certian conditions, but the same is for example one. Also I would have to make sure the banks will agree to I am sure.

Ok, now please let me know how I went wrong. Also I would love to see other way terms may be as important as price. Is it better to have your terms and there price?