Seller Financing Options

[Travis Taylor]

Hi,

New BP member here looking for some advice. I've been renting out a SFH for about a year now and would like to approach the owner about possibly selling.

In recent conversations with the owner, he told me that there were small updates made recently (new windows, backyard patio) and that he primarily owns the property for use of a large garage in the rear and not cash flow. I'm not sure how long he's owned or how much equity he has in the property. The house is a small 1bd/1ba and could use an updated kitchen, bathroom, exterior, driveway and landscaping. If updates were made to the property, it could rent out for $400-600/month more than what I'm currently paying ($1200).

I'm thinking if I allow the current owner continued access to the garage free of charge, without having to manage the property and tenants, he may be interested in deal.

According to the Zillow Zestimate (not sure how accurate that is) the property is valued at $296K and property taxes are approximately $5,200. The goal would be to fix it up then rent it out.

If anyone has any creative financing options or strategies that you think could benefit both the owner and myself, I'd appreciate the feedback. Also, if there's any more information that I could provide, please let me know. 

Thanks, I'm really interested in hearing your responses!