Interest Rate on Sub 80k Property

[Keith Doe]

Hi all,

I have potentially found a deal. Townhome asking 60k. Newly renovated with tenant in place. Going through the listing agent's recommended lender and he came back with 3.25% but after all fees the APR comes out to around 8.25%. This would be my first deal and I want to make sure this is common?

At that rate though, this property does not cash flow.

[Keith Doe]

Originally posted by @Andrew Postell:

@Keith Doe how does this property not cash flow?  What rental numbers are you seeing for a property at this price point?  It would be extremely unusual for this property to not cash flow.  Let us know though.  Maybe there's something we are missing here.

After account for his 8% closing cost and APR it does not pan out. The property is tenant occupied and renting at 795$/m. He quoted mortgage at $525