Seller Finance Deal or No Deal

[Will King]

We have an opportunity to purchase a 10 unit on owner finance. Down payment 15% 30 year AM, no prepayment penalty at 8.5%. With these terms, we would net under $100 a door. We will have a debt service on raising the down payment as well. Thanks for your feed back

[Jason D.]

@Will King 30 year amortization and less than $100 per door, to me, means you're paying too much for the property.

If this is just the opening negotiation point, then I would counter with a lower price, same terms, with the Hope's that you can add some value over the next year or two, and refinance into lower interest rate financing.