My first deal-Seller Financing?? Help!

[Alvatina Broughton]

Hi All,

This is my first post and my first deal. Friends of mine gave me 1st option on their vacation rental property and in fact, that is how I met them 6 years ago. It is directly on the lake/river with 2 docks (2bd/2bath) but it is manufactured on land. They will finance it $275K at 8% (steep to me) but doable. I'm putting down 10%. I intend to use it just as they have all things the same, but I may stay there from time to time. It is only 25-30 min from the city so it is perfectly located. I know the type of rental traffic it gets and it stays booked all year long which I am sure of. Also, they told me the days over the last year that were not booked. They had roughly, even in COVID-19, just 1 day a month at best that were not rented. They said I could refinance as soon as possible at a lower rate. After I worked out the figures, thanks to BP :-), it seems workable and profitable as it will pay for itself AND I get more than enough in my pocket if I leave it a vacation rental; NOT a single family. This is my VERY first deal ever so I am not sure what else in this circumstance I should be aware of so ANY help is greatly appreciated. I live in IL by the way and the property is in TN so I would need to hire a PM (which I accounted for along with all expenses) but I am hoping to buy a home and moving there in a few months so I really do not need anything to interfere with me being able buying in October as well. I hope I gave enough info for all to weigh in.

My questions are do these terms seem right? I know seller finance is high. BUT any pitfalls I should be considering? 

My old loan officer once told me "Please don't get a manufactured home." but never said why. Are banks adverse to them? When it is time for me to refinance will I have an issue? 

Finally, does anyone know of any other sites I can market the home as a vacation rental besides VRBO? Their fees are high and I am not a fan even though that is exactly how I found this one 6 years ago. They soon left it for the same reasons-their fees.

Thanks in advance.

Tina