Seller Financing Question
Hi All. Hoping to gain some insight on a potential rental I’m trying to purchase.
This property is 2 duplexes on one lot. The town will not allow the owner to subdivide it due to road frontage requirements. I’m fairly certain there are no comps for the appraisal so I don’t think any bank will finance it unless the appraiser has some creative way of making this happen.
The seller wants 250k for the parcel. Rents total $4400 and probably have room to increase 100-150 per unit right now. Being somewhat of a newbie, (I have two rentals currently) I like these numbers and think that it is a good deal. However, I will still try to negotiate the price down.
My main questions are, how should I go about pitching the idea of seller financing to the owner? And how should I structure the deal? The owner is my neighbor’s father who is retiring and moving South. He has a handful of multifamily rentals in my area and I would love to buy them all so it’s important to me that this is an amicable experience and we both get a fair deal in order to work together on the other properties.
Thanks in advance for any insight. Appreciate you taking the time to read my post!