Need Advice On A Deal Please!

[Shadman S.]

Hi BP community!

First time posting here but I've been following the BP community for a while. Found a deal in NYC, in a relatively stable area. Next to a hospital, businesses. Lady is selling because she bought another house and tenants are already moving out. It's a 2 family with a legal basement, 3/2/3 layout. Basement needs some minor cosmetic work but that's about it.

Asking $580k but wants "cash buyer" (quick closing - within 30 days). I can make an offer of up to full price as I'm preapproved with either an FHA loan or conventional. I'm thinking FHA since it'll give me the ability to put a lower down payment and put the rest into a second property. I'm still relatively young (25) so I'm trying to get as many properties under my belt as possible.

Rents are 2200/1800/1800. Expenses would be $4000 tax, $3000 insurance, heating approx. $1800. I'd be putting approx. $60-70k all in if I went the FHA route and $115-$120k if conventional. I would be managing it myself - live about 20 minutes away.

Please advise if I should pull the trigger. I'm leaning towards yes considering its a reasonable return for NYC but also don't want to be over my head.

Thanks in advance!

[Jerry W.]

Shadman, I am just reiterating that you are not really a cash buyer.  By the time your lender gets the contract, gets an appraisal to verify value, runs your credit check, orders title insurance, gets a closing set and actually is able to fund the mortgage will not be in 30 days.  Make sure you have contingencies for financing if you make an offer, even though you may be pre approved.  You should probably have one for it meeting appraisal as well.  Anyway good luck.

@Patrisha Leybovich, great advice.  I love to argue real estate with Ben when I get the chance on the forums.  Please feel free to threaten him on treating you properly or I will be taking your case against him for a tiny fee.  Ben will have to go from playing violin to fiddle and singing the Blues.  Welcome to BP.  I hope you enjoyed the change of climate and neighborhood.