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Updated over 7 years ago on . Most recent reply

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5
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Jessen Rodney Johnson
  • Calhoun, KY
0
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5
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21 Year Old Needs HELP

Jessen Rodney Johnson
  • Calhoun, KY
Posted

Im 21 years old going to college. I have one property and looking to buy a duplex. Here are the numbers. Keep in mind the sellers are divorcing and forced to sell.

  1. Asking $100,000
  2. 2,080 Square feet 
  3. New roof
  4. Tenant occupied

Rent is now $975, will be raised to $1,070 

Now the hard part. I have offered 80k, but it will take 85k to buy it. I dont have the down payment. My grandmother will loan me the down payment. My numbers the first five years while repaying her will look like this. 

  1. Mortgage $350
  2. Down Payment $330
  3. Expenses $372 ( Water, Taxes, Insurance, Vacancy, Repairs, etc...

I will cash flow $20 month (absolutely nothing for 5 years)

But in 5 years I will have $45,000 in equity and be cashflowing $500 month.

So is this deal worth pursuing or should I just leave it alone? 

Thank you for your time and I appreciate your advice!

-Jessen

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