Seller Finance Evaluation

[Jonathan Moody]

Hi all,

I have a contract on a duplex in Tampa, FL in an up and coming part of town. Usually I would just wholesale this out, but I own a similar duplex about ten minutes away and would like to keep this one as well. I'm trying to find a private lender to hold paper until I can refinance with a traditional bank. My credit and income are excellent, so I just need to finish saving the 25% downpayment before refinancing with a traditional loan. Duplexes are a huge commodity in Tampa right now, especially in this area, so I'm confident in the ARV.

Here are the terms and I'd like some feedback on whether or not this is an attractive structure to a private lender.

Quick Overview: 

Construction: Block, 2/1 both sides
Property Zip: 33610, FL
Estimated ARV: $130,000-$140,000
Contract Price: $107,000
Estimated Market Rent: $750-$800 per side
Current Rent: $688 per side. One side is section 8. Tenants have been there for several years, and the owners haven't increased the rent for awhile. 
-------------------------
Borrowed amount: $107,000
Investment Term: 8 Months ( I could probably get the refi within 6 months)
Loan Type: Interest Only
Interest Rate: 7% per annum
Monthly Interest Payment: $624.17
Estimated Total Return: $4,993.36
Remaining Principle: $107,000.00

Any feedback would be appreciated! 

[Greg Dickerson]

@Jonathan Moody you should be able to find someone to fund the deal at 8-10% as long as they receive a note and deed of trust. First lien position.