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Updated about 9 years ago,

User Stats

7
Posts
2
Votes
Alicia Kennedy
  • Investor
  • Orange Park, FL
2
Votes |
7
Posts

Thoughts on this deal?

Alicia Kennedy
  • Investor
  • Orange Park, FL
Posted

This would be my first investment property. I was able to locate a 3 bedroom 2.5 bath townhome for sale via owner finance. 

Price 155k

Down payment 10k plus 2k closing

Rate 8% Balance due in 5 years as a balloon

Payment is 1130 per mth does not include taxes or insurance.

My intent is to buy and hold for a rental. TOTAL MONTHLY costs =1300 

The maximum rental is about $1250-1325 for this property size since it's in a historic part of town but this is relatively new construction (2007) in a sought after area. The unit is turn key and needs no work to be move in ready.

Purchasing initially would not meet the cash flow numbers but I would hopefully be able to refinance rather quickly although I am concerned about those costs coming back to back. With a refi it would cash flow close to 500$ per month provided it would appraise properly. My credit is fairly decent, high 600's but DTI is close to 48% before this deal.

There are only 3 units and this owner sold the first one in June for the same price/terms.

Any thoughts on this deal?

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