Things to Watch out for In a Seller Financed Deal

[Melissa Gittens]

Hi Everyone, 

I am working on a 3 family deal where the seller will be financing the purchase of the home. This is my first time doing this for my self and wanted to hear some feedback from more experienced investors. What are some of things I should watch out for? I am a little leary about doing seller financing. Please share some of your stories or experiences with seller financing ANY insight or ideas would be greatly appreciated. 

The property has 2 3 bedroom apartments and a 2 bedroom 2 split level apartment. The apartments have been completely redone and are ready to rent. The 3 bedroom apartments will rent for about 950- 1300 a month and the 2 bedroom around 800-900, utilities are split, I would be responsible for water. My plan is to owner finance for 6-12 months and refi out of it. I would have purchased with a regular loan but I am currently under contract with another deal and don't want to screw up the current deal that I have that is being financed with an FHA 203k Loan.