How do you think this deal and what would you do next?

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  • Ling Han
    May 23, 2020 at 9:16 pm
    Ling Han

    Hi, Everyone, Here are the numbers:
    Bought a single house at $130,000 with $20k down, seller financing $110,000, no interest, 15 ys terms, and 5 years balloon payout. The monthly payment is $612. Taxes $1800, ins.$85/month.
    Spent $10,000 to fix up.It was so popular and so much demanding. Fund qualified tenant in 1 week with the rent $1250 and collected 1st, last month and security deposit. Needs roof work sooner than later.
    How do you think this deal and why?
    What would you do the next step? Hold and rent, sell the note, Sell it…? I could sell it at $160,000 at lease.

    Please bring your ideas. Thanks everyone and stay well.

    DON WEDE
    May 26, 2020 at 7:24 pm
    DON WEDE

    Sorry you dont have a note to sell. You are making note payments not collecting them.

    I dont like the 5 year balloon. If it was me and you can sell now I would. Sorry to skinny of a deal here and the balloon not a good thing.

    Ling Han
    May 27, 2020 at 8:17 pm
    Ling Han

    Hi, Don thanks for your reply.
    Yes, the ballon was not a good idea and I will try to avoid it at the next deal.
    So far I think it is a good cash flown for me. Getting rent $1250 and payment is $612 without interest.
    It was so popular and so much demanding while I was leasing the property so renting will no issue.
    thanks all.

    DON WEDE
    May 28, 2020 at 9:55 am
    DON WEDE

    Ling,
    What is your exit plan? How are you going to payoff the balloon?

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