Am I on the right path? Help

[Gonzalo Hernandez]

Hey guys! Hope you're all doing Good and business is goong well. Im New to BP and real estate, i've been reading alot and i had some questions maybe you guys could help me out with.

I want to buy an apartment as an investment. Ive been reading brandon's book and im sticking to the 200€ cashflow after expenses sugesstion he mentioned on the book.

So I am training how to calculate expenses and cashflow. I was hoping you guys could correct me and show me if something is wrong.

Here is a simulation:

This property gets $225 in monthly cashflow

Closing cost are covered by a PML on 42$ a month on 96 months (Miscellaneous). Loan (of closing costs) is 3k, and total payback in 96 months is 4.1k included interests.

Other info:

- got no savings, but a cashflow of 1000$ a month clean for the project.

-property is Good to go, no rehab needed.

-property has 4 rooms, and a garaje. I will rent the rooms 300$ each (Good price for the zone) and garaje 50$ extra (only 1 garaje slot) summing 1250$ monthly of fully occupied.

Regarding price of house and no down-payment. I'm working on creative finance, the deal is:

Seller financed operation, low monthly payments on the property but high debt. If I don't make payments for 3 month, seller has the right to kick me out and get his property back.

For example:

Property is worth 105k I pay him a total of 150k (financing interests included In the 150k) but In exchange for the extra 45k, he finances it at a really low monthly price on 30 years. He gets 45k earning out of a 105k property and I get cashflow monthly because of low monthly payments... Win - Win?

If I don't make monthly payments for 3months , he gets his house back, all legal and signed. (Will look further in to this) PD:I don't get my equity back either.

Alright so now, back to earth. I need criticism to see where I am going wrong. What do you guys think? Is it risky?are the numbers good?

[Tim Herman]

@Gonzalo Hernandez if he sold to you with zero down and carried at 8% he would receive 172k in interest payments and you are offering 45k. Unless this is your mother not going to happen. Payment would be $770. Why would he accept $300 less. He might end up owing the IRS on imputed interest. Did you do repair and capex budgets. Both look low. My maintenance budget usually works out around $50-$100 per month per unit.