Okay this is the core terms of the deal. It is in Rock Island, IL close to Augustana college. Motivated Seller with owner financing. We made an offer with 7.5% interest, and got a counter that had 4% interest. And the purchase price was only $5,000 higher than what we offered initially. These are all the terms of the deal.
Contract for Deed for 18 Months
Purchase Price $49,900
Down Payment $3,000
Monthly Payment $500 to seller
Interest rate 4%
Amortization schedule 10 years
Monthly payment is going to be $474.84 (I love my mortgage calculator) plus an additional $25.16 per month to principal
Seller pays Insurance and Taxes
First Payment due 90 days after closing
Balloon Payment in 18 Months will be $41,556.42
Property is subject to an appraisal not less than $65,000 at time of Balloon Payment. If appraisal is less than that amount we are not forced to refinance
Buyer’s closing cost will be recording fees and attorney fees
We walked through it yesterday and estimate$3K to $4K in upgrades. There are not many necessary repairs, everything that needs to be done is cosmetic. Right now we estimate $450 of cash flow, after the Refinance with a $50K loan 7%, 20 years ($387.65), taxes $230 (before seeing about getting them reduced from the current annual $2757, these taxes are from the assessed value of $90K), and Insurance $50, Total monthly expense will be $667.65 cashflow will be $282.35 with all of the Down Payment and Rehab money paid back plus cashflow.
Quad City Real Estate Investors Association
Here is the proof of getting a loan to buy a deal with a 585 Credit Score.
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