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Updated over 5 years ago,
Good deal or not? Infinite Return but violates the rules of thumb
Hey Investors,
I have been looking for deals all year and in my area, rents don't typically EVER cover the 1% rule because houses are too expensive compared to rents. However, this deal is owner financed up to 80% (I figured I would use only 20% owner financing and 80% bank financing to get the best blended interest rate) and I can purchase the property with zero of my own cash. So, my question is, is this a good deal even if it barely cash flows due to the fact that it is infinite return and I will still have the upside of equity, appreciation, and tax advantage. It violates the 1% rule and the 50% rule and it barely cash flows.
Is this a good deal or not?
Would you take the deal or not?
Thanks!
Luke
*This link comes directly from our calculators, based on information input by the member who posted.