Seller Carry-back for buy & hold rental

[Kevin Sobilo]

I'm looking for creative options to expand my rental portfolio. I have a few other projects going on and do not want to slow those down by diverting any significant funds towards purchasing a buy & hold rental. I'm trying to purchase with little or possibly no money out of pocket.

So, I was thinking of making an offer on a good cash-flowing 3 unit with a seller carry-back (2nd mortgage) to cover my down payment and closing costs. Has anyone done this? What kind of terms did you use? Did it work out well for you?