Seller Financing?

[Shawn Connors]

Hey BP,

So I have been watching this house in my neighborhood like a hawk.  It has been listed for almost a year and hasn't sold.  Its listed for 250k and probably worth that if it weren't on a busy street.  It is in a great neighborhood but is priced too high and the seller just wont bring it down.  They have took the for sale sign down currently and I am thinking about talking to the seller.  The school district is great and it would make an awesome rental.  It is fully updated and could probably rent for $1650 or slightly higher.  I want to knock on the door and make them an offer but am struggling on how to present it... Should I ask if they would be willing to do a seller financing deal and find a lease option tenant?  Or ask if they would do seller financing and keep it for myself?

[James Wise]

@Shawn Connors

It does not hurt to ask. So go for it. If it is still listed I would go to their Realtor. If not go direct to the sellers.

Owner financing is pretty rare. Very unusual that it makes sense for a seller to do. Even more unusual on a residential property but again you will only know their answer if you ask.

[Matthew F.]

@Shawn Connors

Look up the property address on chester county's website. You can find out what his current mortgage situation is.

http://www.chesco.org/index.aspx?NID=431

It all depends on how much equity he has. If he owns it outright and you bring a nice chunk of cash to the table its a possibility.

[Steve Vaughan]

The average Joe and Jill homeowner aren't very open to or educated about seller financing, but I would still talk to them.  All of mine have been from landlords.

These people don't sound very motivated but it still could be a great learning experience to knock on a door @Shawn Connors!

[Stefanie Bergmann]

if your plan is to rent it out I don't really see any positive cashflow for you, unless you put a very big down payment.

But it never hurts to ask.