Opinions on 3 Properties

[Michael R.]

These are 2 properties I purchased recently. Tell me what you think.

#1 Single Family, 25k, 6k down, 30yr owner financed note
Piti- 328
Rents- 650
Maintenance 100/mo
Water 30/mo
Trash inc. in tax
Tenants pay utilitys
Has new roof and bolier installed 1 week prior to purchase

#2 Single Family Purchased at 29k 4k Down 30yr Owner Financed Note
Rents 805
PITI 427
Maintenance 100/mo
Water 30
Trash in taxes
Utilitys tenant pays
Has a garage I am thinking about cleaning up and seeing if I can rent out for additional income.

Both houses needed some work mostly interior painting which I am currently doing myself.

Looking at a new property thinking about trying to do a L/o I do not want to put any money down.
Any opinions on how the following would work out?

Asking 25k Offering 20k.
5 yr L/O
Ins 300/yr
Tax 1600/yr
= 158/mo

Going to have seller pay taxes and insurance

My expenses will be
70/mo maintance
70/mo management
100/mo profit
=240

So I am figuring 158/mo ( his costs) + 240/mo ( my costs) = 398
This leaves 202/mo to make as payment

He says it was last rented for 600 and I am basing my offer off this figure even though I know I can get at least 650.

He will hold paper on the house for max 10yrs, however he wants 4k down, and right now I do not want to do that. I was thinking maybe I can even do a L/O for a year to apply as the down pmt then roll that into financing provided by him for the balence. This way for the first year he will have the security of still holding clear title.

Any opinions are appreciated, and I look forward to any suggestions.
Thanks!
:mrgreen: :mrgreen: