This would be my first attempt at a deal, here are the numbers on this duplex: Top to bottom duplex with both units having 3 bedrooms 1 bathroom. Not that great of an area, one unit occupied and other is accepting applications from section 8 tenants.

Seller asking 65K, $7,500 down, 8% owner finance for 18 months. Gross rents are 1275 a month, (I have seen the current lease to confirm). I would refinance between a 12-18 months to a conventional.

I have already offered him 55K, 5k down, at 8%. Seller responds I am not negotiable if I will be acting as the lender. I would be willing to spend up to $63,750 with 5K down (following the 50 percent rule). Question: My biggest thing is I only have 5K to put down right now, not $7,500. So, I think my next offer would be 60K, 5k down and see what he says. I think I will need to offer him more than the 8% on his note for the lower down-payment though.

What do you guys think I should offer him to get this property with 5K down and definitely not a dime over 63,750?

Also, what things should I look out for when purchasing a property via owner finance, like I said, I am a newbie and want to jump on this deal very bad.

Please let me know your thoughts?