Creative financing for 1st rental property.
I have been interested in getting involved with buy and hold real estate for some time now, and an opportunity has jumped into my lap from a family member. The only issue is the price is 400k and I need to figure out a way to pull it off within the next few months. She’s been using it for vacation rentals for 20 years with a very successful track record. She would like to keep it in the family so is cutting me a break on what she could possibly sell it for (460-500k) as well as including everything as is (furniture appliances, cleaning crew, annual renters) and will also coach me on how to take over the bookings and run the operations. It’s a deal I do not want to pass up!
She said she would need at least 100k right away and would consider seller financing at the going interest rate for the 300k. Only catch is those numbers are contingent on the sale going to me instead of involving a partner from outside the family. I do not have any debt or bad credit and have a steady descent paying government job which should allow me to get approved for a descent loan but probably nowhere close to the 400k mark. I also have very little money saved up but could borrow enough from my father to secure a down payment of maybe 20k.
I’m looking for some advice on how I may be able to finance this and not let the opportunity pass me by.