SELLER FINANCE HELP!

[Alexander Reda]

Hey everyone,

So I have a deal in the pipeline. The seller wants no less than $500k for his duplex. He owns it out right so there is no debt on the property.

A little detail about the property.

its a 2 unit. Built in 1900. Both units have 2 beds with living room and kitchen. 8 rooms total. total sqft 1476 and is sitting on a 14,810sqft lot. he is recieving  $2400 a month total for rent but told me he has never increased the rents on his tenants. Hes owned the property for 48 years. He also stated that he added new siding and a roof recently. Inside the units sound like they could be updated but he said they are clean with no problems. 

The comps I have ran are no where near the $500k hes asking. the closest one sold for $380k back in dec 2020. the other 3 comps were selling around $255-$300 with the earliest sell date at Sept 2020. The $380k comp was built in 1888 and has 100sqt more. 8 rooms as well But the lost size is only 9000ish sqft compared to the 14,810sqft . 

The seller wants to do seller finance but is strong on the $500k. I was thinking about giving a 3 option of intent to purchase scenarios with 2 options being lower then what hes asking with a lower monthly payment but with interest which would bring the total payout more than $500k hes asking. My last option would be to pay him the $500k with equal payments a month towards principle with a higher monthly payment but with no interest and a longer term with no balloon payment. (these are just ideas that I am thinking about on how I should structure it)

Giving the high demand in the market and all time low interest rates, should I try and make this deal happen? or should I pass?

If you think I should offer a better seller finance option please share.

I should state that this property is located in CT which is booming in rent growth since the pandemic. 

Thank you in adavnce for your feedback! Can't wait to read the replys!