Combining Non QM loan with seller financing to buy a rental
So I just heard that there is this financing option where I can combine Non-QM loan for 50% of the purchase price, and then seller finance the 40%, and then down payment for 10%.
If I can get the 40% of seller financing at 1-2% interest, that would make a good deal a great deal.
Pros:
- only 10% compared to 25/30% down payment. I'm looking to buy as much real estate as possible in the next 5 years so this is big.
- Much lower monthly payments
Cons:
- harder to find a seller willing to finance
- Having to deal with the seller? I'm not too familiar with seller financing. What if they want out?
Any thoughts on this?