NH 6 Unit Seller Financing

[David Bennett]

Hi, 

I'm considering a seller-financed offer for a 6-unit apartment building in NH. I know the landlord and I believe he owns the property outright. Because I cannot (easily) come up with the necessary down-payment I am considering various seller-financing offers as follows: The owner has listed the property for 365k.

1) 275k over 10 years at 5.0%: 10.5k down; total interest=73k; total cash to buyer=353k;

2) 325k over 15 years at 4.0%: 10.5k down; total interest=104k; cash to buyer after interest=429k;

3) 350k over 20 years at 3.0%: 10.5k down; total interest=112k; cash to buyer after interest=462k;

This is a naive offer by default because it's my first seller-financed offer. Therefore, I'm sure there's something I'm missing or, more likely, the interest rates I'm offering are not appropriate (?). I'm keen to hear any feedback from others here at BP regarding the merits and/or faults of this offer. 

thank you!

-Dave