Wholesaler · Pensacola, FL · Member since 2017 · 20 posts · 7 votes
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?
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
9y
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.
Wholesaler · Pensacola, FL · Member since 2017 · 20 posts · 7 votes
9y
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.