New to idea of seller financing does this deal make sense?
Hi All,
I'm new to the idea of seller financing and was hoping to pick the brains of some pros on here. I have 2 rental properties currently but obtained them with a traditional mortgage. From what I've read eventually I will be caped at 4 mortgages. To continue I've read seller financing might be the route to go.
I've found a motivated seller looking offering seller finance, however the HOA will not allow for rentals. The only way I can see this makes sense is if I was to move into the home and rent my current home out. My mortgage currently on primary is about $1700 and I can refinance to bring that even lower. If rented I feel I can cash flow a couple hundred dollars possibly rent for up to $1900.
The seller of the new home is looking to get 10% down and asking for $2200 a month which covers taxes.
Does this make any sense to do as a deal?