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.
Please advise.