First creative financing deal advice

[Jason Xenakis]

Hello all! This is my first creative financing deal and would like some feedback on the terms. I discussed with my lawyer and sent these terms to them. I have one STR down the block and estimate that this grade A single family property in an appreciating market will gross 80k/year.

Purchase Price: $625,000 for house and contents. Already run as an STR, but owners wife was running it and now they are divorced. Does not need much furniture or renovations at all.

Equity payment: $156,000 due May 1, 2025 (I'm building my personal home, so seller is willing to defer till next year)

Loan amount being financed: $469,000

Interest rate: 4.5% (seller has 3% mortgage)

Amortization: 30 years fixed

Balloon term: 10 years

Monthly payment: Principal and Interest due on the 1st of each month, starting the month following closing

Buyer will assume taxes and insurance payment

Monthly payment will be made through an intermediary loan servicer

10% penalty for 30 day late mortgage, interest, tax, or insurance payment

Option for accelerated loan default if 60 days of no insufficent payments

Due on sale clause acknowledgement

Right to refinance/prepayment clause (without penalty)

Sellers obligation to cooperate (seller pays off loan at closing)

Buyer is responsible for all property maintenance, repairs, improvements, and to keep the property in good condition

Personal guarantee

Title insurance with LLC named

Home insurance with LLC named

Contigent upon getting a short term rent license

Any comments on the deal itself or the terms would be much appreciated as this is my first time! Thanks!

[Jake Yuskaitis]

how are you getting a lender to do 4.5% anywhere in this market?