Next Steps After Finding My First Property

[Roy Callan]

After much searching (I know.....everyone goes through this) I have had my offer accepted on my first rental property, an FSBO found on Craigslist. It's a 2 bedroom, 1 bath previously rented but vacant all brick house, no garage in a solid lower middle class area with other rental and non-rental homes. The house seems very sound but will need interior updating to the tune of about $10K in my opinion. Asking price was $40,000, my offer of $47,000 was accepted. It is suggested by the seller that I send $1,000 earnest money and then determine a suitable title company for closing. They are asking that I sign the purchase agreement now but delay the closing until after Jan. 1 for tax reasons. What do I do next???

 I could pay cash but am hoping to leverage a $50K interest only loan @ 7% (12 mth. max. term) commitment from a friend to do the purchase and rehab along with a hard money loan and using as little of my own money as possible.

[Larry F.]

Roy

Please do not give the seller your earnest money. Please for your protection place it in a Escrow/Title Company. Not sure why they are asking for a later close on the deal but I would get a firm closing date in writing.

Good Luck

Larry