Updated over 10 years ago on . Most recent reply
Help! Quick! Need opinions!
Your opinions would be appreciated! I think I'm gonna do it I just want some feedback!
SFH 4/1, 3 car garage fenced in yard, across the street from local college on busy road, I have 5 other rentals within 2 blocks. It's an old house but in good shape, seller is fixing everything now.
Price: 75000
Rent: 1100, conservatively. probably more with garages
Seller financing terms
Down: 25%
Rate: 4.25%
Term: 20 year amort, 10 year balloon
Taxes: 1800
Insurance: 650
Cash flow 250-300/ month after everything. (3000 on 18750)
This is in the area I am trying to get a monopoly in! Needs no work it's ready to rent, pretty good seller financing terms I think. I am at 70k, seller wants 75k we are currently negotiating. Would you do this?
Most Popular Reply
I would give him a couple options on seller financing. If he wants $75k, the give him $75k but ask for a 0.5% reduction in the interest rate, or amortize it to 30 years. If you offer him $70k, then give him his full asking rate. Or offer full price with only 20% down. Quite a few ways you can package it. In my opinion I would give him 3 options, non of them giving him everything he is asking for together, the deal should work for both of you. Ask him what his priority is (down payment, rate, etc) and then make your options based off what he tells you.