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Updated over 5 years ago,

User Stats

96
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6
Votes

Am I nervous for no reason? Help

Robert Hernandez
Posted

Dear BP,

I am looking to purchase my first home via FHA, its a quadplex that will cashflow $600 month after all expenses and 5% Capex, 5% repair, 10% Property management, and 5% vacancy.

The home is in a C class neighborhood, not the best there are some section 8. But, relatively quit, not the worst place. 

Now purchase price is $221,000 (with closing) and Rent Profit is $2940 and all expenses are $2340. So it doesn't meet the 50% rule. What benchmarks do yall use?                                             

My agent is the buyer and seller agent which i'm nervous of since i don't know if there is a conflict of interest. From my inspection all 4 Hvac are 11 years old so they need to be replaced soon. I tried to use that to negotiate the price down but they didn't budge. They said they will pay my home warranty, which is only 500. And I heard HW don't do much good.

Grace period is over. And we are coming to the inspection agreement. They agreed to fix some messed up wood, mold, windows, etc. 

However, I am considering walking away from this deal and not sign the inspection agreement. Am I just getting cold feet?

From the numbers how does this deal sound?

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