seller financing deal
Sale Price: 45k
5k downpayment
Terms: Amortized over 30, payments over 5 years with a balloon at the end.
Interest: 8%
Rent: $750/month
The upside is that it's a seller financing deal. The pros being that we can buy the property for only $5k down. Also the property has a good price to rent ratio. It is turnkey and no repairs are required. It appraised for $48k in May 2016 and I have seen the appraisal. The downside is that obviously it's higher interest rate due to the seller financing. Also, at these terms, our cashflow sucks.
Please help me weigh the pros and cons of this deal. Much appreciated!