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Updated about 5 years ago,
Would you do this deal?
I am working on buying a package of houses from an older investor. He wants at least part of the sale to be via owner financing (4 of the 21 properties) for tax purposes, but he's only interested in doing a 10 year term because of his age. I won't cash flow $100 per door, but I will be paying the 4 houses off in 10 years that are being owner financed. Numbers below - would you do this? The other 17 will be on 20 year bank financing.
Foundation | Asking | Rent | Offer | Percentage | Pmt | Taxes | Insurance | Other (35%) | Total | Cash Flow |
slab | $36,000.00 | $550.00 | $27,500.00 | 0.04735256134 | $215.08 | $28.00 | $55.60 | $192.50 | $491.18 | $58.82 |
slab | $36,000.00 | $750.00 | $37,500.00 | 0.06457167456 | $293.28 | $79.08 | $67.66 | $262.50 | $702.53 | $47.47 |
slab | $36,000.00 | $650.00 | $32,500.00 | 0.05596211795 | $254.18 | $28.42 | $56.80 | $227.50 | $566.90 | $83.10 |
slab | $36,000.00 | $600.00 | $30,000.00 | 0.05165733965 | $234.63 | $28.92 | $59.20 | $210.00 | $532.74 | $67.26 |
slab | $36,000.00 | $585.00 | $29,250.00 | 0.05036590616 | $228.76 | $14.17 | $78.96 | $204.75 | $526.64 | $58.36 |
slab | $36,000.00 | $575.00 | $28,750.00 | 0.0495049505 | $224.85 | $26.67 | $60.00 | $201.25 | $512.77 | $62.23 |
slab | $36,000.00 | $580.00 | $29,000.00 | 0.04993542833 | $226.81 | $27.17 | $64.16 | $203.00 | $521.13 | $58.87 |
slab | $36,000.00 | $425.00 | $21,250.00 | 0.03659061558 | $166.19 | $26.08 | $60.99 | $148.75 | $402.02 | $22.98 |
slab | $36,000.00 | $525.00 | $26,250.00 | 0.04520017219 | $205.30 | $23.25 | $50.47 | $183.75 | $462.77 | $62.23 |
slab | $36,000.00 | $600.00 | $30,000.00 | 0.05165733965 | $234.63 | $30.08 | $64.16 | $210.00 | $538.87 | $61.13 |
slab | $36,000.00 | $600.00 | $30,000.00 | 0.05165733965 | $234.63 | $23.17 | $58.00 | $210.00 | $525.79 | $74.21 |
slab | $36,000.00 | $700.00 | $35,000.00 | 0.06026689625 | $273.73 | $80.92 | $61.33 | $245.00 | $660.98 | $39.02 |
slab | $36,000.00 | $550.00 | $27,500.00 | 0.04735256134 | $215.08 | $15.75 | $57.06 | $192.50 | $480.39 | $69.61 |
piers | $36,000.00 | $425.00 | $21,250.00 | 0.03659061558 | $166.19 | $10.92 | $42.51 | $148.75 | $368.37 | $56.63 |
slab | $36,000.00 | $425.00 | $21,250.00 | 0.03659061558 | $166.19 | $24.58 | $52.44 | $148.75 | $391.97 | $33.03 |
slab | $36,000.00 | $400.00 | $20,000.00 | 0.03443822643 | $156.42 | $19.58 | $49.36 | $140.00 | $365.36 | $34.64 |
slab | $36,000.00 | $500.00 | $25,000.00 | 0.04304778304 | $195.52 | $18.00 | $50.81 | $175.00 | $439.33 | $60.67 |
slab | $36,000.00 | $600.00 | $30,000.00 | 0.05165733965 | $234.63 | $31.83 | $60.00 | $210.00 | $536.46 | $63.54 |
slab | $36,000.00 | $525.00 | $26,250.00 | 0.04520017219 | $205.30 | $27.25 | $60.00 | $183.75 | $476.30 | $48.70 |
slab | $36,000.00 | $550.00 | $27,500.00 | 0.04735256134 | $215.08 | $15.00 | $60.00 | $192.50 | $482.58 | $67.42 |
slab | $36,000.00 | $500.00 | $25,000.00 | 0.04304778304 | $195.52 | $26.92 | $60.00 | $175.00 | $457.44 | $42.56 |
$756,000.00 | $11,615.00 | $580,750.00 | $4,542.00 | $605.75 | $1,229.51 | $4,065.25 | $10,442.51 | $1,172.49 |