Creative Seller Financing Options & Crunching Numbers

[Misti DelMar]

Hello!

I am looking at creative ways into getting my first real estate deal.

I found a duplex that is offering seller financing and the whole place is gutted basically, other than the walls. So it needs new kitchens, bathrooms, flooring, etc. It's the 'worst building' on a nice street in a growing area. I'm trying to run numbers for the first time to see if it's a good deal.

My questions:

* Is there a specific calculator tool I should use to calculate everything? Or a combo?

* Is there a service you can pay for that will run your numbers and options for you? (I'm scared of making a big mistake my first time).

* I would still need a loan on the remodel to get tenants in. Can I use the FHA 203k construction loan (if I lived in the other side)? Is there another type of construction loan I could get?

* Could I purchase this with someone else in a 'partnership', and they get one side's cash flow and I get the other? Or we split the equity on a refinance? Do people work out deals like that? I'm new I don't know what's possible.

Thanks for any help and guidance!

[Colin Fleming]

Hi Misti, I would analyze this as a straight rental to make sure it cash flows when you eventually move out.  The information needed to start calculating numbers are the purchase price, cost of rehab and market rents after renovation.  Can you get those and I will help you with a simple way to do an initial pre-screen of any project?

Also, what are the terms of the seller financing?  Down payment, interest rate, term/amortization etc.