I am 20 yrs old I bought a duplex 6 months ago for 147,600 its appraised at 148,000 so I got it at top dollar. I got financing on 80/20 80%@7.5 adjustable rate (will go up in 2 years guaranteed) and 20%@10.75 fixed rate. I will be paying interest for the first 2 months. I am losing $200 on this monthly w/ tenants living there. It’s suppose to be my primary residence. Refi penalty for the 80 loan is $3600 and no penalty for 20%. So my question is I got a loan on stated income, I figured I am losing $200/month*24=4800 in 2 years interest only from my own pocket. Here in Spokane real estate isn’t going down and not going up much. Is losing $200 pretty bad? I know everyone says if the cash flow isn’t positive it’s not even worth it. So I don’t really see this as an investment. What do you guys think of the situation? I can always refi after the 2 yrs are up and perhaps get a lower rate so I break even or make it a little positive. Comments/Suggestions all welcome. Thanx in advance!

Filed in: Cash Advance Guaranteed