Seller Financing
Hello Everyone,
I am looking for some advice on how to proceed with my first home purchase.
My girlfriend and I are looking to purchase a duplex in Wisconsin. I graduated from college in May of 2012. I pay all of my bills on time. However, there was a student loan that was out there that I didn't know about that I wasn't paying on. As a result my credit when from mid 700's to much lower. It would be difficult for me to get a loan.
We recently came across a duplex for sale. The owner rented it out for many years. He decided if he were to gut it and remodel, he could get more for rent. After he gutted the place, his wife was diagnosed with cancer. He now lives 4 hours away and doesn't have time to fix it up. He also can't sell it because the banks will not give anyone a loan to buy it with the shape it is in.
He is offering the duplex for 82,000 with financing for 6 years at 4%. After 6 years he would expect a balloon payment for the remainder of the cost. I would be responsible for fixing it up. The up and down would rent for about $700 a month each.
Once again this is our first real estate investment. Does anybody have any advice or cautions about moving forward?
Thank you