Investor · Lithonia, GA · Member since 2012 · 231 posts · 43 votes
Hey guys still looking for investment properties in my area. Came across a house and from First looks I don't think there's much of a deal but I wanted to put it on Bigger Pockets to see if maybe there's something outside the box I could think of.
Found a house near my area thats going for $80,000. It was built in the 1950's but has been renovated top to bottom. 3 bedroom 2 baths in Lithonia, GA. Situated in a Middle to Lower middle class neighborhood.
Right now it is renting for $750 per month but in the area it could go for $900.
Off those numbers the deal is very tight, but the one caveit that is interesting is that it is 100% owned by the family.
Immediately a potenial for owner financing comes to my ind but I don't know much about it.
With these numbers would the owner financing part make this a better deal worth looking into? Welcome all thoughts.
I would suggest if it's a good property (house, location) make more than one offer one with traditional financing and lower total amount. Or tell them if they will carry the note you can offer them the full asking price with 10k down and payments of 533.33 a month for 10 years. If they say they want interest offer them 2 or 3%. A lot of times people won't ask for interest.
I agree with Adam, that light at the end of the tunnel could be a train. :) Couldn't resist!
Terms on the seller financing need to be exceptional, even considering the loan costs you'd save, if the price is just fudged higher, like 3%. seller financing doesn't add value to a property and you may need to refinance it, so look to market value, less being better. Search here, much has been written on the topic, the new laws won't be such an issue with an investor selling and an investor buying. see your attorney. :)