Dreamer1Member@dreamer1Join Date: 2003Post Count: 9
Tell me if this deal is a good deal or not. I being thinking about it for a few day but have not come up with the answer. So here is the detail and tell me what you think.
I find a property in Burton, a northern sub. of Adelaide SA. There are plenty of new development up there and a brand new estate is being build at the moment. There is great potential for growth as Holden and Defence force is base near there.
The property is 11 yrs, 3 brms, lock up carport and full length veranda in the back. Land size is about 550-600 sqm and living area is about 135 – 145 sqm. It is a nice and near house. Market price is about $180K – $190K as house in the last six months is selling for that much with similar description.
The vedor asking for $182K
On settlement buyer pay $150K
Vendor carry back $32K for 2 yrs interest free.
Vendor will rent back for 2 yrs at $185 pw.
Doesn’t matter how I look or structure it there is negative CF of around $2500 per year. However, the benefit is that I can but the property for little up front.
This is the question, should I bear the negative CF and buy the property that needed around $10K up front, or secure the deal and flip it to someone else or walk away from it since it is negative CF?
Please give me your opinion, greatly appreciated..
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