Owner finance -deal or no deal
Hello BP fam, I'm in need of some guidance. This is my first time looking into a owner finance and I'm trying to figure out if it's a smart move and what else it would entail to ensure a good deal...
A neighbor across my parents is willing to owner finance his home to me to turn into a rental property. He is currently owner financing it himself and owes $70K. The home is appraised at $275, but does need some cosmetics. Does have a new A/C and roof. He also disclosed that he's behind on his taxes and would need a down payment in order to pay off the back taxes.. I would be purchasing for $240K, with 15K down at closing, and additional $5k annually for first 2 years so I would finance $215K over 30 yrs at 6%. My Payments are $1289 not including taxes or insurance.
deal or no deal guys? Thanks again
If so, do I ask for title in hand? He said the original owner still has it. And how do i know the payments are indeed going to my loan how do i keep track of this without having to take someone's word. I'm worried that if i try to pay it off quicker, we wont really know what's going to principal etc... sorry i know it's a lot ha but i have so many questions and he's wanting to make a move. Thank you thank you