First Seller Finance Deal Advice
Hi BPer,
Please help, is this worth it as either a flip or rent/hold
I've meet a owner(free and clear) of a single family who suggest to me he'll do owner finance even though i told him i can qualify for conventional loan and have the 20% down payment. He sent me an excel sheet of property below. Property is in Lowell, MA 01854 close to Lowell General Hospital.
Purchase price of $250k, $50k down, 4.5% ( ARV ~ $325k, dont know cost to fix yet)
| Bank Mortgage payment - amortized 30 Years (principle and interest) | $1,013 |
| Water $ Sewage ( Annual $800) | $67 |
| R/E Tax (Annual $4264) | $355 |
| Insurance (Annual $1400) | $117 |
| Estimated total monthly cash outlay | $1,552 |
| Rent | $1,775 |
| Net cash inflow | $223 |
| Balloon Payment due 2028 | $ 155,123 |
Most Popular Reply
@Zico George Are you receiving any benefit from his structure? Lower down payment than 20%? Lower rate then what you are finding elsewhere?
Why would you ever complicate the structure if you can afford to do this a traditional route unless you are receiving some benefit or help on a loan that you otherwise couldn't afford?