FSBO, Seller Finance, 0% down, 0% interest, what could go wrong!?

[Jehon Bendokas]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $900

FSBO, Seller-financed, 0% down, 0% interest BRRRR-to-be. Tenants will be out soon to begin the remodel. This will be my first remodel from a distance (previously I've done all my own work). Remodel budget is $40k baseline with up to $60k for contingency expenses.

Hoping to market to University of Arkansas students and hoping to rent for $1800+

[Joe Splitrock]

@Jehon Bendokas the only problem I see is the IRS doesn't allow 0% interest. The seller will be stuck paying taxes on interest income due to imputed interest rules. They are kind of screwed when the IRS catches them. If you care about these people, have them talk to a tax professional before they file taxes and straighten this out. 

Looks like a great deal though!