Seller Financing Deal Analysis Help

[Dominic Richardson]

I need some help analyzing this property in Texas. The seller is offering seller financing. Here are the #s:

Asking $129,000

2 bed 1 bath 718sqft

Everything has been updated

15% Down - 9.5% Interest rate - 30 yrs amortization, no ballon 

Rents around $1000 - 5% Vacancy - $700 Taxes yr - $741 Insurance yr - 10% Property Management - 1.5% of rent for Maintenance and 5% of rent for capital expenditures. 

Based on these numbers Cash Flow is $-252/mo 6.2% Cap and -14.2% COC

If this was a deal you were looking at, where would you want these numbers to be at to make it a win-win or would you just walk away from this opportunity? 

Looking for some help and guidance. Thanks in advance. Please reach out if you need additional info. 

[Adam Bartomeo]

As pointed out above, I don't thing that you are including all of the expenses. Using general numbers the CAP rate should be 4.5% + or -. This does not sound like the greats deal. At $129k I would come in with cash and beat up the seller until the numbers worked to where I need them to be. Based on the numbers, the sellers price is too high, their interest rate is too high, rents are too low.