Seller Financing Deal Structuring

[David Collier Jr]

Happy Memorial Day Weekend all! The owner of the duplex next to mine is finally ready to sell and the property manager (also the broker) has reached out to me to discuss. Currently rented.

Im looking to come up with 3 offers to present and would appreciate any insight and opinion.

I prefer to do an owner financed deal as I am currently looking to purchase a live in flip SF (no longer want to live in my duplex). So an owner occupied low down conventional loan is out as it will effect my ability to purchase a SF with conventional financing. I do have access to low interest PM to do a 20-25% down conventional for this purchase.

Owned free and clear. She wants to clear $300k after commissions, fees etc. As this is an off mkt deal I would not be receiving commission (I'm licensed) however prop manager would per the deal between the owner and himself.

Price: $315k

Mkt Value as is: $350k (recent comps)-

I paid $300k for mine same condition 18 months ago and mkt has appreciated since.

Current gross rents: $2650 (under mkt by $350)

Monthly expenses/holding costs to include tax/ins: $1,420

​Net Rent without financing costs: $1230​

​So essentially I have $1230 per month to work with in an owner financed deal. She is used to netting probably around $1600-1700 not withholding for Vacancy, Cap Ex and repairs.

I need to come up w/ down payment and monthly payment terms, that includes 2.5% for the property managers broker fees.

​I do have access to about $100k in private money. I prefer to keep my own funds for my SF primary res deal. ​

What are your thoughts on finance structuring?