Financing Solution Help Needed

[Steve J.]

Hey BP,

I have what can be a great deal but am hitting a road block with financing. My parents are looking to move, and are willing to sell me the house. They are open to doing seller financing, however there will be about $35k left on their mortgage balance at the time they want to move.

The house is worth about $130k and can get about $1,200 in rent as is. The basement is partially finished, so if I finish the basement I imagine rent could go up to at least $1,400. I’m sure they’d sell it to me for far less than it’s worth which is why I want to find a way to make this deal work.

I don’t want to pay $30,000 to pay off the mortgage, and then pay them monthly through the seller financing. I’ve considered taking the mortgage over which is about $1,200 monthly but that would throw off my numbers and potentially trigger due on sale.

Any ideas on how I can make this deal work and still be profitable?

The fact that I can get it for far less than it’s worth, and have seller financing on the table makes this a can’t miss for me.

Thanks,