Here’s the underlying question.
Do I spend my living expenses to pay for this opportunity?
I’m on the fence with this for several reasons and since this would be my first investment property I’m trying to get as much feed back as possible. I’ll be brief
Here’s the deal:
Location: Philadelphia, PA
Style: Duplex
Ask: $275,000
Unit 1: 1bd/1ba
Unit 2: 2bd/1ba
Gross Monthly Rent: $2,200
Sqft: 1,543
Taxes/yr: 3,000
These are his terms:
$10,000 down payment
Seller (him) pays closing costs
5% interest
He (the trust the property is in) holds the note.
The property is in a flood zone and the utilities are separated. The property is also zoned CMX2 and can have the first floor converted into commercial space.
Background:
I’m a licensed realtor in PA and helped introduce the owner to a buyer for another property of his. Since this was just a favor (I was not paid) he told me he would be willing to owner finance his duplex rather than traditional sale.
His goal is to liquidate his assets because he dislikes the mayor, city, Etc.
He has also provided a full inspection report and an Apprasial that provides a valuation of $290,000
I’ve currently got the $10,000 although that would be all but close to my entire savings that I’ve put aside for my living expenses. Since no paychecks are guaranteed I’ve decided I needed “x” months saved.
My question here is if this is a no-brainer or am I missing something. Is it worth to have the cash flow now or should I wait until I have more saved ?
