Seller financing deal
So, I asked a property seller for seller financing on a 35k single family that I plan on renting for approximately $900-$1200 per month. This is what the seller offered:
1. Sale price 35,900.00
2. Down payment 10,000.00 (We can discuss this amount)
Financed 25,900.00 @ 7% monthly payment 5 yr term 1 1/2 year balloon =
$431.00 principal and $151.08 interest total $582.08 a month
The balloon means in 1 1/2 years you need to do one of the following to the balance 1. Refinance 2. Payoff 3. Refinance our terms. I would prefer #1 or #2 as I do not want to hold debt.
This would be in writing and a mortgage would be put on the property.
Should I take it? This will allow me to put this property into my business (S-corp) and refinance in about a year in the business.