Help me in my first move

Dear friends,

Could anyone pls kindly suggest me a way to gain profit in the following case:

  • I intend to buy an apartement then lend it to a tenant.
  • The apartement is located in very nice area: landscape, close to the hospital, park, school. 15 mins transportation (car) to the downtown.
  • I have to pay the seller USD 720,000. (I have changed the currency for convenience).
  • The bank can give me a loan of 70% of the total price with 1% per month interest in 10 years.
  • The tenant can pay me USD 4000 per month.

The cashflow base on my calculation is negative. I cannot gain anything from it.

The sad truth is:

  • 4000 USD/mo is the above average renting rate in my country.
  • All banks give me a loan of 70%.

Can I have a way to get a positive cashflow?
Can I invest with small down but positive cashflow in my country?

Thank you very much for your sharing, friends!


Change the orientation from what is offered to you to what you need from the deal. That $720,000 is what the seller wants. You must ask yourself what it should cost. You only should look at what you have to get the property for to make a profit. You don’t want to own real estate just to own it. You only want to own it if it makes you a profit. If you have to get it for $500,000 to make a profit, then offer $500,000. Don’t go a penny over what will make it profitable. I pass on deals everyday because the seller wants too much for the property. Ask him about speed of closing, or paying some of his closing costs, or donating to some charity, or something.

I made an offer of $85k on a property that was offered for $165k. From my calculations I needed to do a lot of renovations and that was what I needed to buy it for. They told me no and kept it on the market. I did another deal. About 2 months later they called me and asked me if I would buy it for $90k. If the thing is worth $90k it doesn’t matter what they ask for it; it is only worth $90k. Do the same with this deal. Go to the zero base and decide what it is worth to you and make that offer.