Seller Finance + House Hacking
I’m watching a property that is up for sale. $500k duplex. 3bd/2ba per side close to a good college campus.
I spoke with the listing agent and he said the basement is unfinished and if completed to a 5bd/3 or 4bath that the rents could easily be $2k month. The listing agent is also a property manager so he mentioned he has a property that he manages a 4bd for $2500 a month to 4 college students.
My goal is to get in and live on one side and finish the basement and then the next door basement to increase rents.
The seller is willing to do “some” owner finance.
I cannot borrow from a traditional lender at this moment so I’ll probably have to go hard money but after a year seasoning I’m hoping to refinance.
I’ve never done a seller finance.
How can I make this deal work?
Most Popular Reply
Before you even start talking about financing the deal, you have to know where your numbers are going to be. That will determine your financing path in my mind. Some things to watch out for:
What's the ARV after you fix it up?
How much will it cost to finish the basement? In most states, a basement bedroom needs an egress window, which means cutting into your foundation. Not cheap.
Will it cash flow with you living there, or just supplement your mortgage payment and expenses a bit?