Help closing an owner financing duplex

[Zac Boelkow]

I am in negotiations on a 2/2 duplex that is owner occupied, with another tenant, on one side and long term tenants on the other. Owner is asking $175,000. I offered $150,000(based on running the numbers). After working on the terms he told his agent to tell me that he no longer wants to sell. After about 30 days I called his agent and asked to speak with the owner and went to work. I am offering $150,000 with a $45,000 down payment @ 3% on a 30 year term with a balloon in ten years. The seller wants more. The seller also wants to stay in the property. Seller also does not want to raise rents on anyone in the property because they are living on fixed incomes. Also seller has 16 other properties here in Florida and another state. The seller definitely does not "need" the money. He offered me another property here but same thing. He is asking, basically at best, break even prices. The good news is that I have him talking and he likes me. I just cant get him pinned down.

I have asked him over 30 questions on his motivations/desires/wants etc... I have structured the deal around his answers. I have put him in the driver seat and in control of this deal. I am pretty sure that he cant commit to the 3% and purchase price. Even though I have showed him, with owner financing, he ends up with well over his original asking price of $175,000....

Any help/tips/ideas/suggestions would be great! Thanks!!!!

[Dennis M.]

I’d ask why you even want this deal . Your giving up a huge amount of money down (45k)then having to be on the hook for the balance in ten years via a balloon which really sucks . Your helping him more than your helping yourself if you go through with this Edie silly if you have the means and credit to just use the bank instead . The biggest hurdle is the numbers on the property . Your willing to pay 175k for a duplex that gets only 625$ per side ? That’s not a good value and way below one percent rule .you will not cashflow on this property and it’s not even a good deal to bother with at that price . I don’t care if you can jack up the rents to 750$ a side it still would suck so why are you racking your brain over trying to line the sellers pockets with your hard earned money ? Are you that desperate to find just any deal ?