I am working on a deal which is the commerical office condo with following numbers:
- Price: 300,000
- Cap Rate: 9%
- Good tenant with 21/2 left on the lease.
I like the deal. Ideally I would like to put the 20% down and mortgage the rest.
Seller has not put the property on the market yet. I am familiar with the area and think that it is fairly good deal. Only issue is that seller insists on quick closing (less than a month). I do not think I will be able to get the mortgage by then.
I have some home equity. If I use that I will be ok until the mortgage comes. I will make sure that I have following contingency in the sales contract.
- NO Financial contingency.
Can you guys please advice me if all this make sense. Am I missing any due diligence by not getting the loan and if I am how I make up for that.