Check this Owner Finance Deal Out

1 Reply

I got in touch with an out of state owner who has his property for sale.

Sale Price: $79,900

Property details:

It's an actual house consisting of 3 bed 2 bath. However, he converted the house into 2 units(2/1 and a 1/1). The units are in shared water and electricity. Owner has paid the property off and has no motg

Negotiations:

The seller wants to do like a lease option with $250 a month(none going towards the principal) for 2 years and $5K down. I don't like that option because I want my payments going towards the principal.

Rent:

I Know I can rent the 2/1 for around $750-850 and the 1/1 for $450-550.

My question is, how would you negotiate or what is the best way to get this property?

Why would the seller take $250/mo for something that can be rented for $1400/mo?

Your $250/mo is less than 4% interest only already, you want some to go towards the principle, pay $500/mo. With less than 10% down, that's a steal. Heck, pay $1,000/mo and pocket the $400, that's still almost 100% cash on cash

It seems pretty obvious they’re scamming you or your taking advantage of the seller if fair market is $1400/mo and your complaining about $250/mo. $1100/mo cash flow on a $5k investment isn’t “good enough”?

Will that $250/mo even cover the seller’s property tax and insurance? You might actually be paying negative interest.