Help with first deal.

[Scotty Bowers]

Hi, I have found a duplex that seems like a good deal. The asking price is $110,000, each unit is rented out for $600 monthly. So that's a GRM of 7.6. It is in good shape & has been updated well maintained through the years, in a decent neighborhood. Credit is very good. The problem is I don't have the money for 20% down. If I could get a 2nd mortgage on it, then taxes, insurance, mortgage would be around $700 total. That leaves me with a positive cash flow of about $500, I don't think that's so bad for having 100% financing and it's already rented right?

Currently there is no mortgage on the property it's paid off. Isn't it possible for the seller to carry a 2nd mortgage? Because if so, that would be likely because the seller is my cousin who wants to sell it because he's too busy doing other things to deal with it. How does that work exactly? And how hard is it to get a 2nd mortgage? And would my bank with the 1st mortgage be happy about that? Thanks.

[Steve Vaughan]

If you 'intend' to occupy it, you could get owner-occ financing with a smaller down. Your cousin could lend you the 20% using other property you own maybe?

Times like this make me grateful for sacrificing and saving. Fancy coffees, clothes, cars, etc do not buy RE. Make your choice.