Acquiring

[Jasmine Wilkes]

I have this landlord who is considering selling his home, it is free and clear, plus a cash flow of 1200 a month. he say he will move for 145k, and I said if I can get somewhat close to that would you consider? he said he would , so what do you propose i do?

[Jay Orlauski]

It can work , but you have to run your own numbers to see what YOUR cashflow will be. Start with the terms of the mortgage - how much will you be putting down on the property? And is he going to carry the paper? Once you know your down payment, and length of loan and the interest rate - you will know your monthly mortgage payment. Then calculate you taxes - not sure about your location but in Fresno its 1.25% of the sale price. Lop on your insurance and then get any and all expenses from the last two years that he should be able to provide you with. If after those numbers are run and it still makes sense to you then make your move. Always remember when buying a house that their so called 'cash flow' is a reflection of their situation  - being that the house is paid off - he can claim a much higher cash flow than you would - unless you too were buying all cash. Good luck and keep us in the loop!