Would you accept this seller financing offer?

[Corinne Alconera]

Buy and hold 2-units

20% down payment

30 year amortized note w/5 year balloon payment

Cash flow is $100 per unit

Most 2 units in this area go for $30 - $40,000 less (traditional financing)

I'm interested in knowing what the pros think. This is my first seller finance experience.

[John Horner]

Agree and Agree!  Retail would be the most I would pay at this financing.  Otherwise I would take a 30% discount.

I am not sure what price range this is in, but you are going to have to refi in 5 years, if you're overpaying that much the bank may not appraise it high enough for a refi.