To help answer that question, what type of seller financing are you talking about?
The main benefit is you don't have to deal with bank underwriting/approval and typically need less than 20% down.
@Abel Lopez yes it would. Likely you’ll have a balloon payment at 5 or 10 years and you’d have to refinance.
May be best just to get a bank loan
can confirm what @Jason D. just said. I’m using one of those right now. Typically this is only for single family. My interest rate is 5.625 percent. Could be a bit lower or higher then that now as I locked a couple months ago
Originally posted by @Abel Lopez :
@Dennis M. Haha yes that's exactly why I was asking would it be worth re negotiating the deal to better terms if so what would you ask for in this type of deal
Doesn’t hurt to ask .. if you could get in at the right terms you could have a decent little arrangement. Why a balloon ? I’d try to get the guy to carry it till it’s paid even if it meant a slightly higher payment . Why does it have to be 7% interest I’d ask for 4% or 5% . Why do you have to pay closing costs ? My point is you can be creative on deals to your advantage and hash out better terms skewed in your favor if he will go for it and wants to sell bad enough .
A lot of rentals (dare I say most?) on the market are other people’s mistakes. Don’t buy a rental just to check the box and say you did. If you want to lose money every month donate to charity. You’ll save yourself a lot of headache.
I’ve read the books, I’ve heard the promises, I’ve sifted through the bragging of the infinite returns that can be made with no money down. They do exist. But are they sustainable? Most often probably not.
Save money for a down payment and find a solid cash flowing property that will cover expenses in lean times and pad your wallet in good times. It’s not sexy, but it’s sustainable (and profitable...).