Wait or take this deal?

[Elijah Williamson]

Hey guys. I'm a newer investor from Alberta, Canada. I bought my first property in January 2022, and since then, I've had other deals come to me but none worth pursuing until now.

I had someone approach me asking if I'd like to buy their property. I know the person well which is why she came to me. It's a 2 bedroom/2 bath house that they gutted and redid about 9 years ago. Everything's in great condition honestly. She's asking 100k, seller financing, 0% interest (not a typo). Basically I'll just pay her every month until there's 20% and then I get conventional financing plus I'll pay her enough to cover insurance and taxes. She does want 5% down though. There's a renter in there already paying $900 a month plus utilities. I know the renter personally and he's a good guy from what I know.

My issues I'm having is

1) I'm a little low on capital after my first purchase plus Renos.

2) I've been saving for a house that I can house hack. I own a large rescue dog that doesn't like people so a house hack for me means separate units. Personally I think eliminating my housing cost would benefit me more.

What do you guys think? Should I take this deal or pass on it?

[Bill B.]

If a $5,000 down payment is giving you pause I would pass. What’s your plan if you the fridge or ac goes out the month after you buy it, the furnace in 5 months? You seem way too cash poor.

It would be new having a $280 payment for 4 1/2 years until you had to refinance. You might be better off moving in to the property to save up money for future deals and rent out your current place instead?