60k cash purchase w/infinite CoC upon refi = $55/mo. Good deal?

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Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
No that’s typically a bad deal
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  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    No that’s typically a bad deal
  • Rental Property Investor · Durham, NC · Member since 2018 · 12 posts · 2 votes
    8y

    @Caleb Heimsoth thanks! Is it the cash flow? I tried to be really conservative with my numbers.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y

    @Daric Carter I Missed the infinite ROI in your title and report. I mean I guess that would be okay but 50 bucks a month doesn't get me excited for anything.

    I’d just do this deal with pulling less money out this cash flowing more 

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    8y

    Look at it this way.  Your monthly expenses are $694/month after refi...and you're only getting $56/month.  Real world sets in, and you have one month of a vacancy.  That means in the end, it will take you 12 months...1 year...to recover the negative CF from that vacant month.

    Does that sound like a good deal?

    It isn't just CoC Return. It's also Cash Flow

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