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Updated over 5 years ago,

User Stats

6
Posts
1
Votes
Luke Roberts
1
Votes |
6
Posts

Good deal or not? Infinite Return but violates the rules of thumb

Luke Roberts
Posted

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

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