Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago,
Trade rental income for a lower price on home?
Good day all.
A friend just got his unit appraised in Bahamas for $282,000. Take away closing costs, he’s left with $245,000 in his pocket. He’s offered it to me for $240,000 and i pay all closing costs, 13% on the $240,000. Unit is in a great location, shops, restaurants, beach all within minutes of walking. Short term rentals are allowed. Fees are about $450 per month. Rental income is $2000 per month.
I reached out to a local bank, and they require 40% down payment. They’ll finance the 60% over 10 years. Not a good deal with the bank.
Owner financing is not an option since he had a mortgage and bank will want their money right away if he sells.
I have a vacant unit for rent he really wants to move into for $3000 a month. I’m trying to figure out if I should let him live in the unit for a year rent “free” if he takes off the annual amount, $36,000 off his asking price.
Would this make sense? I’d love to read your thoughts. Thanks for your time!