Thoughts on my first deal!

1 Reply

The owner is willing to sell a duplex.

I have attached the recent improvements to it.

You should be able to get a regular loan on this.

It is fully functional with no repairs needed(as far as I know anyway.) 

$40k.

It has a tenant in one unit. She has been there 3 years. The bigger unit moved out last month, but he is willing to get you a new tenant. He says it only takes about a week there. Or, he can put in the daughter of the current tenant with her family at a reduced rate and they will probably be there for years.

The bigger unit pays the water bill, so the rent is $650 instead of the $700.00 he used to charge. 4bed 3 bath

He is willing to owner finance with $10k down. Simple interest @8% loan 30K 677 monthly payments 3 years. 

Has anyone heard of this kind of loan? And what are your thoughts? This properly will be my first rental!

10k is over 20%. 

20% is normally what is required to get a normal loan and you would get a lower interest rate over a longer term which means lower monthly required payments, although you likely would pay more its nice to not be required. 

I personally haven't done seller financing and have been a bit skeptical just due to allot of shady people out there who attempt it. 

is this an actual duplex or a single family home that somebody divided up? maybe post a pic of the front of the place

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.