I was looking at purchasing a duplex. The price was reasonable, however, I didn't have any down payment. The mortgage payment was around $300.00 per month. I asked the real estate agent. "Would the owner be willing to take a second mortgage?" The owner agreed. Both sides of the duplex rented for $300.00 a month. So my profit was $300.00 a month. The second mortgage worked out to $300.00 a month also.
The second mortgage would take all my profit. I would be breaking even till the second mortgage was paid off. However I figured I would still come out ahead in taxes. Plus remember, they were making my house payment. The deal was made, and I purchased the duplex. About 3 years later, the second mortgage was paid off. I then was able to put $300.00 per month in my pocket. I didn't have any problems renting this duplex. Over the years its been a cash cow.
