Owner financed transaction

[Shane Cook]

I'm about to purchase a single family home that will be owner financed in Milwaukee area. Any advise on this subject

[Steve S.]

Go for it. You usually can't find any better financing terms than owner or seller carry back financing. 

[Joel Florek]

What are the terms if you don't mind me asking?

[Shane Cook]

Originally posted by @Joel Florek:

What are the terms if you don't mind me asking?

 30yr at 9% with 10% down. Ultimately I will be financing 54k. Unit brings in 850.00 per month

[Brock Y.]

9% for 30 yrs? Ouch. Would assume you could find a something lower and shorter just by asking here on BP.

[Shane Cook]

Originally posted by @Brock Y.:

9% for 30 yrs? Ouch. Would assume you could find a something lower and shorter just by asking here on BP.

 I would agree. It was hard to pass up the equity on the place. I will be refinancing or paying off within a year or two

[Tom S.]

@Shane Cook  Get it appraised to make sure you're not overpaying.  If you overpay and go to refinance in a year or so, you may have to bring money to the closing table.

[Shane Cook]

Originally posted by @Tom S.:

@Shane Cook  Get it appraised to make sure you're not overpaying.  If you overpay and go to refinance in a year or so, you may have to bring money to the closing table.

 Already did 

[Account Closed]

@Shane Cook  Sounds good to me, until you can get it refinanced.  Make sure there is no prepayment penalty.  Make sure you actually deposit the rent payments on time.  A provable rental history will help you maximize how much you can cash out later.