Advice on Seller Financing?
Hello everyone!
I was wondering if I can get the BP community's advice on purchasing my first investment property! I am really interested in a condo that is located in Tx. The list price is $126,500. The seller is open to seller financing. Looking at comps in the same apartment complex, I believe the condo can easily get $1,500 in rent every month. My agent told me that I can get it for $125K purchase price with 10% down and a 5 year term (seller is open alternative terms if those don't work). I believe that at the 5 year mark the condo would be renting for about $2K a month. This is my first investment property and I have never done or considered doing seller financing. Do you guys think those are favorable terms and what would be some things you recommend I negotiate with? My main goal is I want to make sure that the $1500 income in rent is breaking even and that I am not losing money. Would you recommend I negotiate longer terms? What would be an acceptable interest rate/amortization that you think I should negotiate. Would you recommend I go through conventional loan instead of seller financing?
Thank you all so much for your continued help in my investing journey! I am really excited to get my first deal in the books and start my REI career!