My offer- 206k offer price, 30 year loan with 5 year balloon, 10% down.
Interest rate - variable
Months 0-24 @ 4.5 % months 25-60 @ 6%
No penalty for prepayment before 5 year balloon.
Monthly loan will be roughly 1300 total PiTi
Cash flow -$600
Thoughts!? This is my first seller finance deal folks, so do not comment if you will bash. I just want to learn and grow and get constructive/helpful feedback.
Rental Property Investor · Clementon. NJ · Member since 2019 · 116 posts · 25 votes
3y
Did you mean total monthly Profit or total monthly rent? Those are two different things. If its profit you should be fine when you estimate prop. managment, capX, vacancy, etc. However, if its just total rent, I would reassess. Try to negotiate either 0 % int or 0% down.
Also I would get quotes on the insurance while you can, because previous estimates just wont work. Prices of building materials have gone up, and home and car insurances have been creeping up as well. Definitely get a quote before you lock in. I'd hate to see a fellow investor get burned once locked in.