All Forum Posts by: Manuel Rivera

I have a home equity line of credit which I will use for the down payment and closing costs. So Its like my own personal loan apart from the mortgage payments. The HOA fees for the rental are 430/m but some utilities are included.

Hi people! I just put an offer on my first rental property located in Washington DC and it was accepted! Its a 2BDR, 1B condo and is located 3 blocks away from the metro. I have 3 days to back off the deal or break the contract. My concern is that when I ran the numbers I made a mistake thinking it came out with some cash flow but in reality I break out even until I pay off the $28K that I'm putting down including closing costs (15% down and around $7k in closing). Im financing the $28K with a credit line, so basically I'm putting $0 from my savings. There's another issue, I'm appraising the condo today and most likely it will appraise for no more than $130K. I offered $141K and the bank is giving me an interest rate of 5.99% for 30 years. My credit line has an APR of 5.09% and the rent can go for $1750/month. Should I proceed with the deal even though the condo will appraise for less? Is it a good deal? If it was you, would you purchase this condo with those mentioned numbers? Any information will be greatly appreciated. Thanks!