Contract for Deed-Determing Cash Flow

[Brady J.]

I'm new to real estate investing and analyzing a couple different deals. One of the deals is seller financing with a balloon payment after 3 years. I like this deal as it'll give me a little more time to build up cash to make the 20% down payment in a few years while I work on a more traditional deal now. During these 3 years because I'll be paying a premium interest I'll only be cash flowing around $100 a month after accounting for repairs, vacancy, capital expenditures, etc. Once I own the home and have financing with the bank I estimate I'll be cash flowing around $330 a month. I read a lot that the magic number is cash flowing at least $300 a month on your property. How would you more experienced investors see this deal? Obviously not a lot of cash flow early is my main concern but I'm looking to build my portfolio at this time.