Seller Financing - Interest Only for 10 years

[Shasha Jhaveri]

Hi BP Forum,

I'm looking at a deal where I put 33% down (2M) and 66% is financed by the seller for 10 years at 5% interest only. The units are turnkey, but could be jazzed up and are renting a little under market. How do I figure out if this is a good deal and how I'm going to handle the principal payment in 10 years?

Any advice would be great. Thanks!