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Updated about 12 years ago,
Investing into negative equity but below replacement cost
I'm looking to buy a cash flow SFH in the Atlanta area with 8% CAP rate and 10% CoC return. However, the appraised value is only 80% of purchase price ($100K) so I'll have to kick in $15K extra cash to close with a traditional loan. The price is ~ $20K below replacement cost, but does this make it a good investment?