Owner Financing Offers

[Shawn Osz]

Does anyone have a rule-of-thumb on calculating owner financing offers? I want to make an offer on a property originally listed at 77,000. Its ARV is approximately 100K. It does need some minor rehab but its structurally sound and I estimate on high side of about 20k without me doing the work. The price just reduced to around 72K and I believe the house is free and clear. I would like to get it at 70% ARV minus rehab costs but feel that a 50K cash offer would be insulting so I would like to also make a higher offer on terms. I'm willing to put up to 15,000 as a down payment into the deal plus the rehab costs. This is a buy and hold and plan to refi out after a renter is in place with a little seasoning. I'm not looking to hit a home run here but would like to be fairly conservative on my projections do to low appreciation expectations. My objective is cash flow and expected rent is around 750-850/month. How do I structure a fair offer that looks appealing to the seller and good for my cashflow? Any suggestions or example offer would be greatly appreciated.