Seller Finance on a Duplex, should i buy it? on what terms?

Seller Finance on a Duplex, should i buy it? on what terms?

Real Estate Agent · Omaha, NE · Member since 2016 · 12 posts · 2 votes

OK Thanks for taking a minute to answer this question.

I was making calls to landlords on craigslist and asked a guy if he knew anyone that would be willing to sell their rental and he indicated that he would be interested. I asked if he would consider Seller Financing and he said yes again... My question is at what price would this be a deal that i should consider? Here are the details:

Locations is great and right off the interstate.  B neighborhood

This is a 4 plex with but only with 2 meters ( was a duplex converted to a 4plex )

rents $650 + $75 (garage), $650 +$75 (garage), $750, $750 = $2,950 per month

He said he thinks its work $275 - $300k

furnace and a/c are newer units, he said it might need some exterior paint

here is a link to it on Craigslist: https://omaha.craigslist.org/apa/5667884841.html

This could be my first rental property, I want something that is low maintenance, something i can get my feet wet with and am willing to take lower cash flow. On top of that... Seller Financing is the only option for me at this point to build my portfolio as i don't have the capital or LTV. Thoughts?

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San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y

Well, I think letting a bunch of BP investors know about this deal, including the contact info and address  was very trusting on your part :-)  You probably shouldn't give your competition all the details like that.

Make sure the guy is really the owner before you give him any money.

I'll let the other investors advise you on the numbers.  

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  • Multi-family Investor · Allendale, MI · Member since 2015 · 121 posts · 51 votes
    10y
    Have you figured what your cost will be? Who will be paying for the extra utilities above the 175? What are taxes, insurance, trash, and lawn care expenses? I would want to see his expenses. Also what would payment and interest rate be?
  • Developer · Kansas City, KS · Member since 2015 · 84 posts · 9 votes
    10y

    Use the rental cal to see what would work for you.

  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    Well, I think letting a bunch of BP investors know about this deal, including the contact info and address  was very trusting on your part :-)  You probably shouldn't give your competition all the details like that.

    Make sure the guy is really the owner before you give him any money.

    I'll let the other investors advise you on the numbers.  

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    10y

    As an agent I'd imagine you could pull comps. Small residential property value is most heavily weighed by comparables, of course. Nobody outside your area will be able to help as to value. Pretend it's a listing or something.

    Not sure why you have no money, but my last couple seller financed deals have been at 90% of PP at 6% for 24 yr straight am.  Without the 10% down, they would not have been.

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