Numbers received during due diligence

[Anna Sam]

Hi

I am doing due diligence on a property and I see that the owner is showing only about 1/3rd of the annual rents that he is claiming that he is making. he is also managing the property himself. Have you had similar scenario during due diligence? I will review the other records for property but just concerned that they are showing so little. Bank would not finance this based on the tax returns alone so I understand why the owner wants to do owner finance. But if I have to go to bank within the next few years then I cannot do that for the next 3 years and have to make sure that the numbers look good before I talk to bank. Any one sees issues with this scenario?

May be I need to renegotiate the price since they are asking for bit higher price due to owner finance. please let me know your thoughts/suggestions.

Thanks

[Loc R.]

Seller finance is no reason to get into a bad deal...if you can't figure out on paper how this deal puts money in your pocket the moment you close, it's time to look for another deal...