One very important, kind of subtle point, people often miss is the condition of the property.

I consider that to be a very naive and kind of a lazy way of doing financial calculations.So I really would suggest all Investors do at least a 10 year pro-forma projection business plan.

Even better would be an infinite return where you don't invest any of your own money.I hope that kind of answers your questions, I'm very much a newbie myself but anyway I can help I'm always happy to.

Or is there some kind of limitation?

What type of debt is the $24k if it is credit card debt pay that off before you do investing of any kind because the interest you will save will be the safest and highest and best use of your money over any investment.

@Amanda Blanch: You are very kind to make this offer and you are right: I don’t want to see anyone take advantage of her and I’d like to see her walk away with some cash to start over.

(the down payment is completely relevant to the seller)Interest- 7% is pretty standard...it's a premium paid for consideration in carrying the noteAmortization- 30-years is typicalPayment- I would look for the actual P&I based on the amortization schedule, but again, this is relative to the sellerBalloon- 48-60 months is common, and this is completely up to the seller as well (If sellers are leary of the time frame, I always agree to attempt a re-finance sooner...but no guarantees)Some extras:I always pay the listing agent's commision based on the transaction price...otherwise, you can structure a partial commission the first closing and a second commission when the balloon is due...waiting 48-months for the rest of your commission is crazy, thoughWe pay all the doc prep fees (note/mortgage/amortization/assignments/personal guaranty) Typically around $300, so not bad.- use the attorney at title and add it to the HUD-1We use a clause in the note that waives the right to defend a foreclosure in default, so the property returns to the seller without contest (varies from state to state I imagine)We also pay the sellers closing costsAll of this stuff is negotiable...you can always push things with these...like lower the down payment and have the buyer pay all your clients fees and your commission, etc.Give me a shout if you want to chat more about this topic.

Is that common?

Or in this area are short term rentals more common?

Is it a some kind of recreation area or a condo?