Seller financing opportunity

[Tripp Wylie]

I had an opportunity pop up recently that involved owner financing. I’m just not sure how to analyze it. It’s a $150,000 house (market value). Currently it is rented for $1300/month. Renovations are being done and rents expected to increase to $1500-1700. The financing terms are 20% down, 3 years @ 7%. Or Interest only with a balloon at the end of 3 years. This is a college town in a good area that stays rented. I am not able to do traditional financing at this time which is why the seller financing has attractive. Thought about offering less down, longer term etc. Help please!