How To Make This Deal Work?
Hey all,
I'm trying to figure out how to make this deal work for us and the seller. He's pretty firm on a purchase price of 40k. It needs about 20k in repairs and the ARV is about 65k-70k (conservative).
He's open to seller financing, but we've never done a SF deal, so I'm looking for some advice on how to make a deal like this work, if possible. I know it's tight after repairs, but I also know that you can make these types of deals profitable if you're creative enough.
What do you think the best piece to go after would be (low downpayment, low interest, low monthly payment, longer term)? I thought about a 30 year amortization with a 10 year balloon or something like that.
He also would want a prepayment clause where we can't cash him out right away to avoid the interest, so this would eliminate a refi as well.
Much appreciated!