Hello all, first thanks for taking the time to read, and thanks for any and all advice in advance...
Looking at a 1BR 1Bath house in a rural town in the Midwest, priced at $23,000 and it comes with a mobile home on the property. Mobile home has a tenant who's been there a year and a half renting on a month to month basis at this point at $275/month, the house is vacant, but was recently rented at $475/month as of 2 months ago. Low end renovation I'd say $2,500 and high end $10,000, haven't really crunched those numbers yet as we are going back for a 2nd look tomorrow. Thoughts on the deal? Questions for me to ask about the deal?
The financing portion, was planning to do a conventional loan, however in talking with my banker he now says the terms are 5 years at 5.45%, I was prepared for a 10-15 year loan as I thought that's what we previously discussed, so now my numbers don't look as good. Seems low on the years, I haven't really talked to a ton of banks just yet, thoughts there? We have an LLC formed that we plan to get the properties placed under, seems like I should be able to get a longer term than that though? We have great credit and great income and have the 20% down payment ready to go
As for the offer I'd like to do the 3 option method that I've heard Brandon talk about, so my thoughts were to come in at $17,000 with a conventional loan offer and then throw in a seller financing deal ($21,000 purchase price, $150/month and paid in full in 3 years) and a 3rd option of a deferred down payment? I'm unsure as to what may be a good way to present that and/or what good terms would be? Obviously if I can lengthen the terms with some seller financing if I am only going to be able to get 5 years that would be beneficial. Thoughts there? Also the realtor I'm working with, in the business for 14 years said he's never done a seller financing deal in case someone gets sued, seems like seller financing is a good option if it works for both parties?
Trying not to make this too long, I have a ton of questions though, but I'll stop there for now :-D but please let me know what questions or info you may need/have for me to help clear things up. Truly appreciate any and all feedback, this is my first post so I'm excited to make connections with you all
Should I post this in a different forum?