Seller Finance deal, advice please
Hey friends! I'm a relative new investor. I have 2 duplex one bought with a normal commercial loan and one with a FHA that I live in. I'm currently looking to buy 2 more with limited cash. I have $20k, could probably scrape a few more.
I'm looking at 2 deals, a 4plex and a duplex. Id love to buy them both.
I'd like to do another FHA loan on the 4plex, and seller finance the 2plex. Reasoning on the seller finance on the 2plex is because the seller offered it for one, and 2 to make it easier for me to obtain due to income/expense ratio and other issues with me getting 2 more loans when I have 2 already. Ive owned the current 2 for only a year now.
Now my main question is, can you look over the terms the seller posted and tell me what you think, because I have no idea. Have never seller financed before.....I think I can bump the rents $50 as well as they are pretty low, so that'll help with cashflow too. I want to make sure this is either a good deal, or bring up a counter offer.
Details from seller:
Fully Occupied - Multi-Family Home (Duplex) for $99,000 - $9k down and $840/month (interest only) for 36 months with a balloon payment due for the balance.
Year Built: 1931
Monthly Rental Income: $1,115
Annual Rental Income: $13,380 year
Total 2016 Taxes: $1,253
Total Sq.Ft.: 1,984 Sq.Ft.
Unit # 1 - 2 bed/1 bath/936 Sq.Ft.
Unit # 2 - 2 bed/1 bath/1,008 Sq.Ft.