HELP!! Seller Financing: Sweeten the Pot!

[Adam Germany]

I spoke about this deal in another post, but I have an update. Below are the details:

•860 Sq. Ft. Lake-view Cabin
2/1; open Kitchen-Living Area
•$900/month rental potential
•Owned free and clear
•$150K ARV
•Seller wants $130K
•Needs closer to $20K in repairs
•In order to wholesale, I need to get it under contract for under $85K. First goal is to sell him on that.
•If seller doesn't accept traditional wholesale, plan B is to do seller financing (see below):

$100K Selling Price
Seller holds note for 15 years
$5K down
$700 monthly payments
$900 monthly rental income
Owner would still net $130K (his initial asking price) through interest payments over 15 years by holding the note.

Would this be an attractive seller financing deal for you seasoned investors out there if this were in your market? If not, what would sweeten the deal for you?

As always I appreciate all honest and productive feedback and comments. Thanks in advance for all of your help BP fam!

[Jon Holdman]

No, not an interesting deal. $130K+$20K for $900 in rent is way too much. $900 rent with $700 payment (I assume that's P&I to the owner) puts you about $250 a month in the hole.

Saying the seller's getting his $130K price isn't accurate. He's making a $95K loan at (by my calculations) 3.95% and collecting $31,000 in interest. Unlikely you could get an owner to bite at a 3.95% rate and $30K off his $130K price.

Any reason to think he would come down from $130K to $85K? That's a huge drop.