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Updated over 10 years ago on . Most recent reply

Purchasing with no money down when the seller has 100% equity
So I'm looking for some advice on how to negotiate this deal. I have come across a seller who has no mortgage on their investment property, lives over 2 hours away from the property, and is fed up with renting, and just wants to sell and move on. They have no mortgage on the property, and would entertain seller-financing.
For me - I would like to buy and rent it to somebody for the cash flow. I do not have a lot of cash reserves, and can not afford to carry a mortgage on the property. I would like to try and negotiate a sale contingent on me getting a renter in their before purchasing. I like very close to the property and would have no problem showing it to tenants and screening tenants. I am trying to hedge my risk as much as possible.
Most Popular Reply

Daniel Karbownik
Boy, everything is negotiable, but you'd be hard pressed to get someone to agree to that. If you can't cover the mortgage you'd be worse than a tenant not paying rent because they would have to foreclose. I might suggest you grab a buddy and scrap together 5 grand as a small down payment and safety net, because if you don't have the reserves for 1 mortgage payment you are asking for troubles. Such as furnaces, mold, and tenants not paying rent. My thoughts anyway.