Why would I NOT want seller financing?

[Ken Holifield]

The up front question is, why would I not want seller financing if I can get it? I'm currently looking to grow my portfolio of single fam and small multi fam rentals and have been offered something similar to this several times. If I can get a property below market value (instant equity) and it cash flows every month with seller financing, what are the down sides / risks with taking as many of these as I can find? Kinda like buying every property in monopoly that you land on! Quick example: Property ARV - $185k Repairs (upgrades to get rent ready) - $5k Sale price - $150k Only 5% down at 5% with a balloon due in 5 years Cash flows $500 per month after all expenses Why would I not do this deal as many times as possible? What are the risks?

[Colton Wanner]

I would take every seller-financed deal I could get my hands on, as long as the numbers make sense! I think it's also a good idea these days to have cash reserves set aside and a plan B just in case things hit the fan and you have to get another loan on the property for whatever reason. Better safe than sorry. 8)