Creative Financing ideas needed

[Melissa Faraias]

Hello BP community,

I am relatively new to REI investing and getting ready to buy my third rental property. The seller, who is my contractor is very motivated and wants to sell his house. He owes 43K to the bank at a 11% rate of interest. He is reluctant to accept my all-cash offer, which he believes is very low. I am looking for other creative financing ideas to make this deal work. Can I take out a hard money loan for the 43K plus the 40K rehab amount and have him owner finance the rest of the purchase price to me? If that is the case, how does the refinancing work? Can I refinance into a DSCR loan just the 83K and keep the owner finance loan on the side? If the seller requires a balloon payment in 3-5 years, then can I refinance once again the entire amount into a 30 year loan at the end of the balloon period? Any other options to get this deal closed? Thank you so much in advance.