Can I wholesale a Owner/Seeller financed agreement?
I live in Louisville Ky, and I'm new to real estate. I'm still researching exactly what I want to do but I had this idea that I haven't heard anyone talk about before.
If I were to get an owner to agree to seller finance their home(assuming that the home is owned free and clear) on terms including an assignment clause, could I then turn around and wholesale the agreement for a premium tacked on to the end buyer's down payment?
For example:
If I could get an owner to agree on seller financing a house for $100k, 10% down and 0% interest for 30 years giving me monthly payments of $250. With such a low payment it would be easier to cash flow. Assuming fair market rent for this property was 900/mo and after conservative expenses it cash flows $225 giving me a cash-on-cash return of 27%, could I then say turn around and wholesale the deal for 10k to an end buyer giving him a cash-on-cash return of 13.5%?
Could this work? Is it Legal? Am I missing something?