Deal Analysis Help for newbie!

[Rion Redinger]

Newbie here trying to find out if this deal structure seems legit, and if the deal is good enough to be able to pitch to potential buyers or JV partners.

Thanks for any and all input- it’s like drinking from a fire hose for me.

Deal breakdown

Asking price: $700k

Current Market Value: $675k

Repairs estimate: $25 -$35k

ARV: $710 - 725k

Seller Mortgage: $430k @ 2.75% 30yr with 27 years remaining USDA loan

HELOC: $70k - seller requires this paid off

Total debts against property : $500k

Seller is asking for:

HELOC paid off

Enough cash to pay off their other debts estimated at $110k give or take.

Rent back agreement at $3200 / month until they secure their new home

Seller will carry back the remaining approximately $100k for 10 years at 0% and a lump sum payment of $10k each year on November 1st beginning next year.

Seller agreed to a sub-to as long as payments are made through a licensed loan servicing company.

So final numbers look like this:

Mortgage : $2480/ month PITI

Rent Income: $3200/ month

Cash down : $170k

Positive cash flow of $720 / month

Property is a 3 bed 1.5 bath 1915 square foot two story on 4 acres, large shop 2400 square feet, barn 1800 square feet, house was built in 1995, some updating has been done with all new stainless appliances, new LVP flooring on main floor, new sinks, faucets, toilets, light fixtures, door hardware, electrical outlets and switches, wall heaters and thermostats are new.

Location is rural Clark County Washington approximately 1 hr northeast of Portland International Airport.

Hopefully that’s enough information to get some good feedback.