Seller financing- What to know when you don't know

[Frank Eimiller]

My broker friend and I have been talking for months at the YMCA about my interests in REI. We put together a possible seller financing deal and i'll be walking through the property in a little bit with him.

When looking through the property-- What are the most important things to remember, consider, mention, etc-- it's an upper lower duplex built in 1922. Both units have brand new furnaces. 

The deal will be seller financed with me bringing a 20% of PP check to the table (lent to me from my Credit Union)-- What kind of term(s) should I be looking for that aren't obvious/What are good things to try and negotiate? 

This will be my first real estate purchase ever, and in my opinion the numbers look pretty good, those numbers being:

59k PP

$1100-$1200 gross rent (monthly between the two units)

I figure after vacancy, repairs, capex, PM (Although i'll self manage initially,) and taxes, etc... I'll cash flow 120-150$/per door. 

Again, this is my first deal and i'm just trying to get any last minute advice or information before I walk through the property for the first time, thanks BP nation for all of the information that's lead to me getting this close to my first deal

Wisconsin Duplex Rental Winnebago Fond Du Lac 

[Shawn Ackerman]

you may be able to get a better interest rate with seller financing opposed to a bank.  That's certainly an advantage.  I'd suggest stretching the financing out as long as the seller will go.  Many times you will find that sellers will offer a long term amortization loan due in a shorter period like 5-10 years which will mean a balloon payment at the end.  I'd take something like that at a lower interest rate then refinance out before the term ends.  If you can get in under 4.25 you should be in good shape.