Seller financing deal
My wife and I have been debating on a seller finance deal offered to us by a family member for a rental house.
3 bedroom 1 bath house recently renovated in B-C class neighborhood. New HVAC, carpet, kitchen and bathroom.
Offer- $75,000 on a 15 year fixed rate of 5%. With property taxes $600/ year and insurance $600/ year.
Dilemma- the payment for the deal puts us at around $690/month. The house rents for 700-750/month. We do have 3 other rental houses that net us $750 profit a month but with such a slim margin of clearing the mortgage we are questioning the deal. Other option is to put $5,000 down and decrease the mortgage to $650/month.
We would hate to pass up an owner financed deal but we would also hate to be paying so much a month if it is unrented for a period of time.
Thoughts?