Would you...?

[Travis Washington]

Deal details: Short sale home Agreed sale price: $17K 3rd party listing agent fee: $10k Closing cost: $3k Total: $30k Loan details: $30k 15-year 3/1 ARM @5.7% 20% down ($6k) Monthly breakdown: Rent: $650 P&I: $200 Ins: $110 Taxes: $77 Expenses (50% rule): $195 Total Monthly Expenses: $582 Monthly CF (650-582): $68 House needs no work. Was built in 97. Last sold in 09 for $82.5k. However, resale at the price currently wouldn't be attainable. County assesses it at $93k (reason for the high taxes). And currently has renters on month-to-month paying $450 (just moved in in July). I will need to bump this up to $650-675. Would love to have a 30-year loan but I cannot find one bank that will do such on an investment property. A 30-year would make the numbers a no-brainer. So to my BP amigos, at $6k in for roughly $65/month do you close the deal or walk away???? This one has me on the fence. It's a low return but it's also minimal $ in. ALSO: if anybody knows a bank that issues investment loans on 30-years, please let me know!

[Jerry W.]

In a heartbeat if its in a decent area.    I am surprised at some of your expenses though.  For me $3K closing fees are outrageous, insurance at $110 a month would break my business, and taxes need challenged.  What the heck is a $10K listing fee?  That is insane.  Is it a wholesaler fee?  I am also confused how you came up with expenses of $195 using the 50% rule.  That is not remotely close to how I understand that rule.  All of my loans are 15 year loans.  This deal beats the 2% rule and its built in 1997?  That is awesome.  I would expect it to have been built in 1897 to get the 2% rule.  If this is a borderline deal for your area I may have to go visit and buy a dozen houses.  Good luck on this one bud.