[Calc Review] Help me analyze this deal

[Joel Van Kampen]

Hello!

Thanks for taking the time to read and look at my potential deal. I received a quote back from the bank today: Adjustable Rate program with 20 year amortization and 20% down is 6.25% but the rate goes variable in 15 years. This would be my 3rd deal and curious what others think about this. Its close to my current properties and would be an off market purchase. 

Please take a look at what I put together.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[Joel Van Kampen]

Excellent points @Eric Greenberg. PM is fairly simple with the properties in close proximity, yet adding additional buffer is imperative. The brand new HVAC and a couple year old roof helps with the necessary rehab in the next couple years. Tenant pays all utilities, mows, and shovels as per lease. Thankfully I've had very little issues with these items with current tenants. 

My exit strategy would be to refinance when the rates go down @Chris Webb. At the 15 year point I will owe $40,750.70 if I pay nothing extra on this loan. Looking at using this property as a learning tool for my kids too.

Because the owner chose not to owner finance, I am leaning toward requesting a lower price. Thoughts on how to make this a better deal for both parties? I have an in-house real estate agent.