I have the opportunity to buy a duplex with seller financing. After running the numbers I know that to make this a good deal the most I can pay per month is $600. What would be the advantages and disadvantages for both the seller and me of having the purchase price be low and having a high interest rate vs having a high purchase price and low interest rate?
What do you call a good deal?
Ease of entry always makes a deal look better to me. If I can control a property with little cash and time out of my pocket, the amount I make each month is a smaller factor.
Seller financing takes no paperwork or inspections. A bank can exhaust you with fees, paperwork and inspections. Just the time it takes to talk to the bank is a lot.
I always would go for a lower price and higher interest. Higher interest usually will catch the sellers attention. You can always refinance out of the higher interest if you want. You can sell and make a profit with a lower purchase price. Higher purchase price unless you hold it forever is a bad deal. You can pay down the principle faster on a lower purchase price.
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