OWNER FINANCING

[Ricardo Salter]

Hello everyone, I have this owner financed deal on the table but don't know if its a deal or can it be made into a deal from an investors point of view.

3bed 2bath  1,494 sf Features: Pool

Listing Price 159,900

20% to 25% down

Property Taxes 1,774

Rents 1,600-1,800

comps 130,000 to 150,000

Any feedback is greatly appreciated.

[Dean Letfus]

Well I offer 1% above current bank deposit rates and go for a 30 year am with ten year earliest call.

I have bought a number of homes like this at 1.7% interest recently.

Obviously you can pay more the process is to work out what your max interest rate is to make it cashflow. Sometimes sellers only want to finance short term and this will kill the deal. You need low interest money long term to get the principal down fast so it stops being upside down.