Owner Finance Down Payment

[Richard Herrera]

Hello All, 

I'm currently working on a multifamily deal that the owner is open to owner finance for a very short period. 3 years balloon.  He is asking for roughly 36% down payment. I just don't know if this is a practical method, it seems too high compare to if I were to go the banking route - they  would only require me to put down like 20-25%. 

Is this 36% down payment fair? the numbers are as follow

Purchase price: $360k
Down Payment: $130k
interest rate: 6.75
Cash on Cash: 16%

There is room to get that cash on cash to 21% by month 12.

Let me know your opinions on how you would approach this deal.

Thank you.

[Nicholas L.]

@Richard Herrera

very easy no.

for SF i want to put less down, not more

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