Balloon Lending for a 4 Plex - looking for help
Hi everyone,
Looking for some help or direction on our first investment property, specifically with the seller finance balloon option vs traditional financing, thank you!
Below are the details:
- 4 Unit Multi Family asking $249,000
- $500 Rent Per Unit = $2000 Rental Income (all original tenants occupied since 2007)
- Asking Price = $249,000
- Minor Cosmetic to $0 Rehab
- Potential Rental Income in the area = $600 to $700 per month
- BiggerPockets Rental Calculator AS IS:
Monthly cash flow -$203 /mo
Income -$2,000 /mo
Expenses -$1,796 /mo
CoC ROI - 4.35%
Seller Financing option:
- Balloon Payment - 20% down for 2 Year Terms @ 7% interest
We believe we can bring the rent to $650/unit within the first 2 months.
What should we be considering with our financing options ? Any help is greatly appreciated!