Rookie Investor - Feedback Wanted: Seller Finance/Subject-To Deal — Neighbor property

[Weston Rutkowski]

Here’s the deal I’m working on — would really appreciate your wisdom:

🏡 Property:

• 2 bed / 2 bath in a quiet gated retirement community (Granbury, TX) built in 1988.

• All appliances under 5 years old. Seller is replacing the roof and gutters via insurance before she leaves.

• Only needed repairs: paint interior and cabinets and exterior siding possibly have to replace (that were aware of as of now)

💸 Loan Details:

• Seller owes ~$196K

• Fixed interest rate of 4.375%

• Monthly payment: ~$1,805 (PITI)

💰 Home Value:

• Estimated around $310K–$320K after new roof

• Rent estimate: ~$2,000/month (long-term) this is just what i assumed based off other properites that are close by

🧓 Seller’s Position:

• Elderly, has lived there for years we know each other well — she mentioned just letting me “take over the payments" Target move-out is sometime this fall.

🎯 My Goals:

• Do this creatively and respectfully (no predatory vibes — she trusts me and I want to protect that)

• Ideally structure this as a seller finance or subject-to deal with minimal possibly zero upfront capital.

• Use it as a long-term rental buy and hold.

🧠 My Questions for You All:

1. What should I absolutely ask or confirm with the seller before moving forward?

2. How would you structure this to protect both sides and keep it simple?

3. What are the key red flags or gotchas I should watch for (legal, logistical, or ethical)?

4. If you’ve done this in Texas, are there any unique state-level laws or disclosures I need to follow?

5. Would this make more sense as a subject-to or seller finance from a future strategy perspective?

Appreciate you all taking the time to read this. I want to do right by the seller and also make sure I’m setting this up for long-term success. If I can make this work, it’ll be my first true deal — and a foundation I hope to build on for years to come.

Thanks again!

Weston