Funding Options for a Single Family Home

[Leather Nix]

First of all, this site is a wealth of information and I'm really impressed with how helpful everyone is.

Now to the question: I've found a property and negotiated a deal. Paying $55k for a house valued at $75k. No work needs to be done on the house. The tenant in it wants to buy it through owner finance, so we're including that in the closing of the property. He's paying $10k down, financing $65k. I'm giving him the option of 120 months at 8.5% (payments $802/month) or 96 months at 7.5% (payments $902/month).

1) I'm pretty excited about this. It seems like a good deal to my newbie eyes. At closing, it'll pay out the $10k down payment and the payments will provide a good cash flow with a good overall profit. Am I missing anything?

2) This is the big question...what are the best funding options for this? I know a cash partner would be ideal and that's a possibility. I may use hard money, just to get the job done and buy time to set up better funding. (That will also get the down payment in my pocket, which will provide options.) However, I know that will cut into the profit. The only other funding source I'm familiar with is traditional, which seems less ideal. Any ideas on non-traditional funding options?

I'm in East Texas, btw. I greatly appreciate any insight that may be provided. Thank you!

[Leather Nix]

Originally posted by @Mike Reynolds:

Originally posted by @Leather Nix:

First of all, this site is a wealth of information and I'm really impressed with how helpful everyone is.

Now to the question: I've found a property and negotiated a deal. Paying $55k for a house valued at $75k. No work needs to be done on the house. The tenant in it wants to buy it through owner finance, so we're including that in the closing of the property. He's paying $10k down, financing $65k. I'm giving him the option of 120 months at 8.5% (payments $802/month) or 96 months at 7.5% (payments $902/month).

1) I'm pretty excited about this. It seems like a good deal to my newbie eyes. At closing, it'll pay out the $10k down payment and the payments will provide a good cash flow with a good overall profit. Am I missing anything?

2) This is the big question...what are the best funding options for this? I know a cash partner would be ideal and that's a possibility. I may use hard money, just to get the job done and buy time to set up better funding. (That will also get the down payment in my pocket, which will provide options.) However, I know that will cut into the profit. The only other funding source I'm familiar with is traditional, which seems less ideal. Any ideas on non-traditional funding options?

I'm in East Texas, btw. I greatly appreciate any insight that may be provided. Thank you!

Just a thought, have you tried Etpcu? Their home office is there. I have good luck with the regional office here in Nac. 

 That's funny, ETPCU is my bank. I just didn't expect them to be interested. I'll definitely give them a call. Thank you.