Seller financing in Northern VA

[Jordan Northrup]

Hello Everyone, I have a deal that I need help with. Here's the situation:

I have an extended family member on my wife's side who has a property that she owns free and clear. The lady has no mind for business and is so risk adverse that often
makes her own situation worse by inaction. She owns about 5 properties and most of them are vacant. This particular one is in Northern Virginia. I would estimate that it
needs about $75k worth of work with an ARV of about $550,000. This is supported by multiple comps in the neighbor hood.

Rather than selling to a stranger, she'd like to sell to me and offer seller financing. She would sell me the house for a nominal amount so that I can get it deeded to my
LLC, then I would begin the renovations. After fixing it up, I can either flip or do a BRRRR cashout refi and get a tenant in there. If I can get it to appraise for
$550k, 75% would be $412,500, less $75k renovations, the amount to her would be $337,500.

The hangup will be in getting her to agree to the $337,500. In addition to risk aversion, she also has unrealistic expectations. She thinks the home is worth over $400k in
its present condition. There's no way.

Can you think of any traps that I'm not seeing? What do you think of the overall deal? Looking forward to hearing your feedback!