I am about to buy a house for $64K (northwest FL) to use as a rental. Long story short, the owner died and her sister wants to get rid of the house. It's in good shape and will easily rent for 800-900. I was going to offer maybe 5% down but not sure on the interest rate (suggestions?)
I'm debating if I should get a traditional mortgage or see if the owner will finance. I know most of the pros and cons of both but I'm not sure which would be better. If I can get seller financing, why would I consider a regular bank mortgage? I know seller financing is usually used so the buyer can take a few years to build up their credit but I easily qualify for a mortgage so that's not a problem. Do investors use it more so they don't have to use as much of their own money? Any advice?
Prepare for conventional and ask for seller financing. You never know what their motivation is.
My husband and I recently bought a $620,000 coastal FL house with seller financing. The husband had died and the wife and kids were selling. No indication that they would offer seller financing. But they did.
Well, my post is now irrelevant. I asked and the owner just wants to be rid of it so no seller financing. I think it's an emotional thing and she just wants to not be reminded of it.
Now I need to find a good option to fund the down payment. I'd rather not diminish my savings if I don't have to.