Perfect seller finance deal

[Adam DeShone]

Acquired from a retiring landlord in early 2023, this duplex was turnkey upon closing. The previous owner was retiring but wanted to keep the monthly cash coming in with a guaranteed interest rate. Introducing the perfect seller financing opportunity!
This deal was sourced from an agent pocket listing. We negotiated a 90% seller note and a 10% down payment at closing. The terms are 5% interest, 30-year fixed, 30-year amortization, and 10-year balloon. The property was already occupied by long-term tenants and did not need any immediate renovations. When they move, it will need light cosmetic updates. The total monthly PITI is ~$1,050. Both sides rent equal to $2,100.

The market value is $200,000.

What made you interested in investing in this type of deal?

My current specialty is residential investing and managing the properties on the backend. My strategy is to buy and hold. This duplex is in great shape & I could add value by getting the rents to market value. A fixed interest rate of 5% for 10 years is extremely attractive for an uncertain time in interest rates. 

How did you find this deal, and how did you negotiate it?

This deal was a pocket listing from an agent we had previously worked with. He knew my business partner and I are looking to add deals and brought it to us immediately. 

How did you finance this deal?

This was financed as a 90% seller note and a 10% down payment at closing. The terms of the note are 5% interest, 30-year fixed, 30-year amortization, and 10-year balloon.

What was the outcome?

We now own a highly desirable duplex with instant equity, cash flow, low money down, and a locked interest rate.