To Deal or not to Deal?

[Zrano Bowles]

Hi Guys! 1st time investor here. I’d like to solicit your thoughts on a deal I’m looking to close in the next week or so.

The deal... $70,000 for 2 duplexes (4 doors) at a fixed 5% for the first 5 years (balloon payment after 5 years on a15 year amortization). 20% down (financing $54k).

Income: $2200 per month (total)

Questions:

1. Is this a good deal?

2. Do I use cash as a down payment or a line of credit I currently have at 5%?

3. Once the loan is finalized, I'll have access to approx. $50k in equity. The current lender does not offer HELOC but rather a CD at 2% which acts as a line of credit. Which would you choose or do I use my own cash? Or should I seek a HELOC else where?

4. Any other tips or look fors are greatly appreciated!

Thanks in advance!