Maybe our first real deal on SFH (opinions)

[Louis Collins]

Hello everyone! My wife and I just went and looked at a few houses and found one that we feel could be our first deal. The Area: The town is Palestine Texas pop. 25,000ish the house is located in an older part of town but not in any danger zone. There are many decent places to work like warehouses and prisons. The house: built in 1965 it is single story and has 3 br 2 bath. It is peir and beam but was recently leveled. Vinyl plank throughout except for kitchen which is tile. Everything has been recently repainted inside and out. Central ac and heat. Fenced backyard. Apx square footage is 1380. No major problems that i know of have not had an inspection yet. Price they are asking 59000 but are very motivated. Plan on offering 45000. Taxes are about 150 a month Basic insurance will likely be about 60 a month Im figuring 150 a month for maintenance and capx The morgage would be 305 a month if i do 15 year at 6% with 20% down Totaling to 665 Rent in the area is around 800 a month. Does this sound like a deal or am i just trying to make it into one?

[Jim Cummings]

@Louis Collins. Do a 30-year Loan so you'll have less Mortgage expense and better cash flow. 

Once you get established and comfortable with the property, you can throw additional money at the mortgage each month and have the same effect as a 15-Year Loan.