Buying new house and using current home as first rental ?
I am trying to figure out a way to get started with my first deal without having to wait too long while waiting for my savings to grow. I have been thinking about possibly renting out my current home and buying another home. Obviously, I'd still have to come up with a downpayment on the new home, so I'm wondering if trying to find a person willing to do seller-financing would be an option. I'm thinking I might offer 5-10% down with 7% loan rate (house has been on the market 1 year). If I could get such a deal structured how might that work in a year or two if I wanted to actually obtain a bank loan on the property? Would it be a new loan with a downpayment? Or a refinance?
Are there any other aspects of this I am not considering that I should?