HELP...Need some advice from you guys.. =)

[Fernando Asencio]

Hello all..  2 questions..

Property is in the good section of newark

1. I have 70k in my savings.. Cant get bank loan because credit cards are too high..(ive been paying myself first and credit cards last like Robert kiyosaki says lol)... With banks I get to the end..pay for appraisal of property and everything all to get rejected at the end. =( cant get personal loan, hard money is too much intrest and peer to peer relies on good credit as well. So I just have 70k in my savings.. Seller wants to sell a single famly house.. for 70k, good area with tenant already as well. Imagine my luck smh. Rental income is 1,150. Tenant pays on time..cash flow would be around $900 monthly after expenses.CAP is about 15%. As you may know I am a newbie..and would like and appreciate some feedback from you all. You guys are great!

2. Should I let this deal go..and pay off my credit card and try to get a loan next time..or should I just go balls out and pay cash for this turnkey property who has a great tenant with a 15% cap

Any advice would be appreciated. House is 4 bedrooms  1 1/5 bath and everything is up to date..

thank you all

[Christine Kankowski]

I guess it depends on a few things  How much credit card debt do you have?  Are you currently living where you are saving more money than you are spending? Or is this debt just going to continue to build? How much interest are you paying??

I would ask the owner if you put 20K down, if he would carry a note for you for the remainder.$50K.  At a 5% interest rate, you would owe the owner $530 each month(for 10 years) , so you would still be making pretty good cash flow.    The owner gets out of the responsibility of dealing with tenants, repairs, etc. 

I would then take the money you still have and pay off your debt. I've read the Kiyosaki books, but I dont agree with holding on to expensive debt.  I would do everything in my power to save, pay it off, and live frugally to get it paid off. 

Just one idea. Best of luck to you!!