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Old 04-19-2005, 01:15 PM  
HowlingWulf
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Kill ya? I guess you weren't around when interest rates were up to 18%. They're currently very low now what are you talking about?

Also points aren't usually a good idea unless you plan to hold the place for 7+ years, which is the average age a property is owned before it changes hands. Keep the points money to yourself and let the tenants pay the (very little) extra per month. Usually in a few years either 1. you plan to sell 2. you refinance to take advantage of a better loan or 3. you'll hold on to into it for longer. That $3600 or so in pts you'd pay would be better in a reserve.

As for the deal itself, it's not much imho. It doesn't have good (if any) cash flow and won't appreciate as good as a SFH. If you want appreciation/speculation, go for SFH with little/no cash flow. If you want cash flow, go for a 4-unit building - they're usually not much more than for a 2-unit building and the income is twice as good.
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