Home owners, this a good deal?

Discussion in 'Community Discussion' started by n8236, Aug 6, 2012.

  1. n8236, Aug 6, 2012
    Last edited: Aug 6, 2012

    n8236 macrumors 65816

    Joined:
    Mar 1, 2006
    #1
    Hello everyone,

    I'm looking for some advise as to whether this is a good deal or not. Please bare with me as I'm not good with all the #s.

    My dad and uncle went 50/50 on a 4-plex which costed $650k. The mortgage is $2030, property tax + water is $1000, paying $1000 back to equity line and rental income is $4650.

    Net per month is 4600-2030-1000-1000=570.

    With that, I am now in a position to buy out by uncle's share. However, they are requesting an additional 50k on top of their 75k down payment. We've had the complex for about 2.5 years.

    If I pay him 50k (on top of returning his 75k down) for his 2.5 years investment, I calculate a ROI of 17%! Someone please correct me if that's wrong.

    Assuming I buy him out this very minute and do finish paying off the equity line with my dad by mid-2016, the 50k I owe him divided by the rental income will me 8.33 years?! Is that good?
     
  2. MorphingDragon macrumors 603

    MorphingDragon

    Joined:
    Mar 27, 2009
    Location:
    The World Inbetween
    #2
    Go see a property/investment lawyer and get a contract written up. They will sort out the best deal for you. ;)
     

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