Contract #1 (Offer #2)

- Huge 5 unit apartment. Almost no repairs (EST. $3,000). Asking $115,000. Offered $90,000 puts it at a 11% Cap rate, which we feel is acceptable. If it is accepted I will place more details about it on here.

Or offer eventually got accepted after some negotiating. They wanted $115k, we offered $90k. They came back with $105k, we gave them three options...

option #1 - $95,000 with 80% conventional mortgage.

option #2 - $97,500 with 3 points paid up front on a (20% seller financing) 8%/15 year 2nd seller mortgage and 80% conventional 1st.

option #3 - $100,000 with 0 points on a $20,000 8%/15 year 2nd seller mortgage and a 70% conventional 1st (10% cash down).

They accepted our offer #2 with the ability to call the 2nd mortgage in 5 years if they chose. So in this deal we have around $3k of our money in it, because they are paying closing costs as well. All we need to do now is get the financing from the bank, which I believe will be the easier part of this deal. I will post the final numbers, when we get all the financing in place.