Tayvion Payton
Would You Pay an 18% Premium for Seller Financing at 2%?
13 January 2025 | 2 replies
., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?
Tayvion Payton
Would You Pay an 18% Premium for Seller Financing at 2%?
13 January 2025 | 6 replies
Would the 9-year balloon concern you, knowing you'd need to refinance or pay off the balance at potentially higher market rates in the future?
Sara Holt
First timer getting creative??
12 January 2025 | 1 reply
Reason is a Heloc generally carries a higher rate on a shorter term and "Can Never" be used as an "Asset, or for PITI reserves" which are both required when you buy an investment property.
Brandon Toron
How to get the most cash out of my property?
13 January 2025 | 13 replies
What about rate and term refinancing?
Stephen Fleming
Newbie Plan. Thoughts?
14 January 2025 | 9 replies
@Stephen Fleming your cashflow probably won't be what you think it will be:(Have you factored in the new property taxes at homestead millage rates?
Abdul Hafeez Jamali
Lenders for foreign national investors
12 January 2025 | 17 replies
I am seeing interest rates start in the mid 6% range for foreign nationals here in Florida.
Zhong Zhang
a multifamily investment case analysis
16 January 2025 | 5 replies
I mainly want to ask if these assumptions are reasonable and if there's anything I haven't considered:(1) multifamily units in NJ close to New York City, ~$1,000,000, 20% down payment, (2) Using the following assumptions: 4% appreciation rate, 6.5% interest rate and 5.0% refinance after 5 years, $10,000 yearly maintenance fee(3) ~$6,000 monthly rental and assume 3% increase yearly with 5% vacancy rate(4) Based on the above, the calculated IRR if selling at the 10th year is ~19% (considering tax benefits) and ~17% (without tax benefits).
Samuel Coronado
Looking at another park
13 January 2025 | 8 replies
At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.
Tayvion Payton
Seeking Advice: Is $850K a Reasonable Offer for This Multifamily Property?
13 January 2025 | 17 replies
As-is cap rate of 7.5% in my market (kc) would be pretty awesome to buy.
Carlos Silva
Velocity Banking for paying off mortgages
13 January 2025 | 19 replies
You would end up saving the higher interest rate on the HELOC as well as closing costs.