What if you could get a no cash in deal?

[William Collins]

A unique property in a nearby market where it is 2 separate houses with 3 units on 1 piece of land. So this would be an approximately $250,000 deal with no money in. 2 x 2br 1 ba units and 1x 4 brx 1ba house free standing. So as near as I can figure it would be 1000x 2+ 1400/ month. Taxes are @6600/year. Due to the unique nature it has been on the market for a long time and there is a potential of doing a complete owner finance deal.

With no cash in does that tip the balance on the price not being in line with 50% rule?

Thoughts?

[Jerry W.]

William Collins I love your enthusiasm, and I have done 2 deals like you are doing now but you have some serious problems you need to account for before you buy. There is NO WAY you will never have to replace a faucet or hot water heater, or never call a plumber for a plugged line. At least 1 big item like furnace, or roof will go in 30 years. You might even have to dig up sewer or water line that broke for an unknown reason. How much cash do you have on hand if one of these events happen? Never put nothing in maintenance cost. Will you be managing these yourself or using a pm? Also explain your 100% finace deal please. Is owner financing everything for you for 30 years? Doesnt seem likely. Bank is not doing it. Are you financing 80% with bank and 20% with owner?(I have done 2 of these) Any balloons? Fixed or variable interest rate? Lots of info we need to really help you evaluate this deal.