Hi,
I'm in the process of buying my first house. The seller is a friend and bought the property years ago and it has since then dropped majorly in value. The seller doesnt want to take on the high mortgage payments on property that's decreased so much, and he's trying to help me out so that's why he's selling it to me. It's a studio apartment and was bought at around 120k. We appraised it and it was valued at about 80,000 (nothing is updated and very old bthrm/kitchen. He's agreed to sell it to me for 60k. I'm just getting a little confused because it is a friendly sale so of course we're not going through proper procedure. I think this is a great opportunity because i don't have any credit and have been in the industry for all my working career. I just don't want to get fucked in any way. My goal is to buy this house, fix it up then buy another house and rent this one out. We are working out some paper work but by the time the sale will be ready, im in a position where i can buy the studio in cash in full but that'll be my whole bankroll. I'm not too worried about future incoming cash flow. My question is, should i do it and use my whole savings. i'm looking at it as an investment in the long run. I can pay it off immediately or shortly and start collecting revenue on it. If i pay it off in full i'm thinking ill have equity behind me, always have a place to live, and have no debt or mortgages on my credit. I'm also thinking i can proposition him the full cash lump sum into an even more discounted price, say 10,000 off? He's in need of cash. I don't know if this is the smarter thing to do in this economy, or whether i should offer a hefty down payment and have very low mortgage payments which will mean i will have a more comfortable cushion behind me in case of emergencies. Sorry this is so scatterbrained, its just hard to ask people for advice when you're in this industry. I want to hurry up and close this deal before anything goes wrong but feel like i cant expedite the process because i'm just not informed enough but as soon as i know 100% in which direction i should go i will be nagging at him to get these papers signed.



Reply With Quote


Bookmarks