BRRRR with Seller Financing

[Shyheim Lee]

Hello All,

I'm fairly new to this method and analyzing a deal. Just want to get some clarity on somethings throughout this strategy. I see a property offering owner finance can I still go to a small bank and refinance for a new mortgage on the home and then pay off the owner before this term ends?

Also, I would like to ask. When it comes to potential rents when going to refinance how do you determine if the new rent amount will cover the new monthly mortgage, insurance, etc price. For example: If I rent out a unit for $1500 and the mortgage ends up being greater than $1500 how can I minimize this risk? As I look at the other surrounding rent prices in the area to get a good gauge on the rental market.

Thanks for your time.