Would you do this deal?

[Eric McAvoy]

Here are the details:

Tripled listed at 125k and I plan on offering 117.5k

P&I would be $570/mo

Rental income: $1675 from all 3 units

The issue is the 25% down. I don’t have 30k but I could get it from investors. I’m thinking of paying 10% interest on it over the next 36 months to fully pay it back. That’d be about $890/mo.

So $890+$570 is $1460. Then the left over $215 would be put aside for repairs and maintenance and vacancy.

basically, it will cashflow almost $1100/mo but not for 3 years until the investor is paid back.

With all that in mind, would this deal be something you all would recommend? Or should I move onto the next property?

Thanks for the help! 😁

[Marc Winter]

Questions:  Why does it have to be 25% down?  

On the whole, it looks pretty good, except you must be ready to come out of pocket for some hefty repairs--to think nothing heavy will fall for 3 years is wishful thinking.  Remember, it's not the fall that kills ya--it's the landing.