Ok, Folks, this might be kinda long, but I’ll be as brief as possible. My plan is to pay off my bills - meaning, I’m credit card debt free in March 2006 - by paying off 1 bill a month at approximately $1000 - $1300 a month
As I’m reading and researching about REI, I’ve come across some great properties. I’ve only been researching about 2 weeks, so I don’t know whether it’s newbie excitement or what. However, I keep telling myself to slow down, and when I’m ready next spring, there will (hopefully) still be some good deals out there.
Which brings me to my post:
There are 2 multi family properties that I’ve identified as good buys.
The first is $165k list, with $12,000 NOI, vacancy factor 50.
The second is 195k list, with $14,200 NOI, vacancy factor 0.
While my preference is to wait until March, it seems like I’m missing 2 great opportunities. I have not idea how I can get either of these properites.
I know that the data still needs to be verified. In fact, I’ll deduct $2400 off the NOI for the sake of fact finding, and newbie miscalculations, which still leaves $9,600 NOI, and $11,800 respectively.
I know the NOI will be lower because I don’t have a 20% down payment.
Obviously, the property with the 0 vacancy factor is better, but the list price - althought I realize i can offer less - is still over what I can comfortably swing on a monthly basis if someone flakes on the rent.
How can I do this deal no money down? And will doing so going to make my margin a lot more narrow?
When I figure out a strategy to buy the property, what strategies can I use to increase my cash flow/reduce the mortgage, thereby increasing my cash flow?
P.S. I can come with some modest earnest money, and cash to pay an appraiser, and have an inspection, pay for an insurance policy.
It’s the big cash thats an issue.