Seller financing opportunity
I had an opportunity pop up recently that involved owner financing. I’m just not sure how to analyze it.
It’s a $150,000 house (market value). Currently it is rented for $1300/month. Renovations are being done and rents expected to increase to $1500-1700.
The financing terms are 20% down, 3 years @ 7%.
Or
Interest only with a balloon at the end of 3 years.
This is a college town in a good area that stays rented.
I am not able to do traditional financing at this time which is why the seller financing has attractive.
Thought about offering less down, longer term etc.
Help please!