Owner financing .... interest rates ?

[Igor Gajic]

Hi guys, I'm pretty new to BP and relatively new to Real estate investing, so if you guys have any suggestions and better ideas feel free to say it I'm pretty open minded to anyone's ideas as I am trying to learn along the way ...so here is my situation, I am currently sticking with multi family homes .. I'm looking at a couple multi-family properties where the owners are willing to do owner financing. These properties are in Central Connecticut. I am still in the process of negotiating a price and interest rate. I like to stick to the 5/5/5 offer rule .. so I offered 5% down, 5% interest, rate and 5 year balloon out. The owner looks like he is willing to negotiate ... he is selling his property for 240k @ 8% interest rate and 5 year Balloon out ... he owns the property free and clear. My question is, what do interest rates go for if one is willing to owner finance me preferably in (Connecticut) ? Thank you guys in advance and also feel free to give me your opinions because this is my first time doing owner financing.