Hello BP friends, I have a seller who is open to doing seller financing on the purchase chase price of 3 separate duplex as a portfolio deal. However some of the units need some work. Any suggestion on how I can structure this deal so that I can recoup my downpayment and repair cost (about 160k combined). There will be at least 15 to 20% equity left on each duplex if I was to refinance for the full purchase price and repair cost. But I would like to leave the seller financing in place. Thanks in advance
@Clifford Charles , first things first: the "purchase + repair cost" is irrelevant. You need to determine what the ARV will be for each property. Any bank loan is going to depend on the appraisals. They're not going to just add those two numbers together and give you a loan based on that.
Second: Lenders will want to see at least 20-25% equity in any investment property. 15% is a non-starter.
Third: Why do you want to leave the seller financing in place, even after reno?
If you give us all the details, the community will be happy to help spitball some options.