First Deal - Owner Finance

[Wes Shepherd]

Single Family Residence

New furnace, plumbing, electrical ( Does not need any rehab work)

$25,000 Purchase price, should rent for at least $375. Owner is willing to finance 10% down at 6% for 30 years. Taxes are $500 a year and insurance would be cheap for me.

Here are the numbers :

14% Cap Rate

Total Monthly Income: $375.00

x50% for Expenses: $187.50

Monthly Payment/Interest Payment: $134.90

Total Monthly Cashflow using 50% Rule: $52.60

One benefit is this house is two blocks from my house, and is in really good condition.

What does everyone think about this deal? Regarding the owner finance; is it common to not allow prepayment? There is no way i would take this deal if i have to make thirty years of payments, i would pay off within 7. I am not sure what the common contract is.

Thanks,

Wes