Is this a good deal?

General Real Estate Investing
1

3 family - listed for $225,000

Annual Gross Rent - $25,680

Less -
Est. Vacany & Rent Loss - $2140
Taxes - $2500
Est. Insurance -$1000
Est. Maintainance -$1500
Est. Misc Expenses -$250

Total Operating Expense -$5250

Net Operating Income - $18,290

Less Interest Expense - $15,687 (7% - with 100% financing) - I haven’t had much luck with creative financing - even though we have great credit and some assets. Everyone wants 25%-10% down for a 3 family (under Fannie Mae guidelines)

Before Tax Income - $2612

The property would show a loss after the depreciation deduction.

Any thoughts would be appreciated. This property will probably go quickly, so we will have to act fast if we want the property and it will probably get the full asking price. It is a very competitive listing price for the area.

2

Any idea on what kind of rates I should expect on a deal like this. It seems everyone wants 10-25% down…

3

I would buy it; looks pretty solid.

Expect to pay 0.5-0.75% more than owner occupied rates are. What thay rate is depends on your credit, amt down, etc, etc