Making first offer today - thoughts/ suggestions!
Making my first offer this afternoon. Offer is for a duplex that is cash flowing 1300 per month. I am going to offer seller, who owns the property free and clear, to do seller financing, in a deal where I will pay him the full retail price of his property, for $135,000. The terms are that I am going to pay him 800 per month for 120 months, on the 121st month I will pay him balloon for remainder of loan. I will cash flow 500 per month after paying him.Yes it is zero money down zero interest but it works for him bc he no longer has to deal w property and it will save him capital gains taxes. It works for me for obvious reasons. Any ideas/comments/suggestions? It seems fairly simple to me. Am I overlooking something?