All Forum Posts by: Alicia Kennedy

Thank you everyone. My 'gut' feeling is that this was a bad deal and the only consideration was the owner financing which sounds less appealing. 

I will leave this one alone. Work on my DTI as suggested and work with my mortgage broker.

I would rather spend 155k on 3 smaller condos or townhomes that cash flow out of he gate. The sparkly "owner financing" got me...:-) I really appreciate all the advice based on your experience! 

The current market is the asking price. Not sure, I could definitely ask about price if I secure my own financing.

This would be my first investment property. I was able to locate a 3 bedroom 2.5 bath townhome for sale via owner finance. 

Price 155k

Down payment 10k plus 2k closing

Rate 8% Balance due in 5 years as a balloon

Payment is 1130 per mth does not include taxes or insurance.

My intent is to buy and hold for a rental. TOTAL MONTHLY costs =1300 

The maximum rental is about $1250-1325 for this property size since it's in a historic part of town but this is relatively new construction (2007) in a sought after area. The unit is turn key and needs no work to be move in ready.

Purchasing initially would not meet the cash flow numbers but I would hopefully be able to refinance rather quickly although I am concerned about those costs coming back to back. With a refi it would cash flow close to 500$ per month provided it would appraise properly. My credit is fairly decent, high 600's but DTI is close to 48% before this deal.

There are only 3 units and this owner sold the first one in June for the same price/terms.

Any thoughts on this deal?

Thanks @Marlon Wilson and @Gino Barbaro.

I am originally from NY so I understand the challenges in that market although doable, expenses are much higher.  I think you will really like the Jax market.

Welcome Cody! I am new to BP myself...

What type of deals are you looking to do? Flip, buy and hold, wholesale,  turn key? 

Nice goals you have also. Best of luck!

-AK

Thanks Attila. I think I have over studied the market here in Jacksonville! There are a lot.of options from historic areas with huge homes, waterfront,  beaches, high end country club, to mobile homes, farm land and low end duplexes. I think the market really has something for everyone.  Jacksonville is pretty diverse and widespread. I think I did pretty well purchasing my house two years ago, and we are sitting on about 70k in equity to cash out and buy a few little properties next year. I am just hoping condo fees stay low...

Hello everyone,  my name Is Alicia Kennedy and I am a real estate investor retread so to speak. I gambled big back in 2007 and lost it all. Back then it was easy to jump in head first thinking everything would pan out. Well it didn't,  so after paying my dues and getting my hands on about every book I could about real estate investing,  I am looking to get back in the market. I would like to buy hold lower priced single family and condos. My range is about 25k to 100k in the Jacksonville market. Low maintenance is for me and I am hoping to retire to the beach in 10 years! Any advice is greatly appreciated. :-) I also happen to work in IT for largest mortgage servicing and origination software platform in  the country, so if  I can help with questions after you close your deals, let me know!