Dallas TX // Seller Financing Deal on the Table, First Timer

[Daniel LeGare]

I recently found a house in Dallas (listed on Zillow for 120 days) that is 100% owned by the seller, and they're open to seller financing. I am interested in buying the house and renting it out. I have the ability to put 10% down. Big potential downside- both a selling and buying agent are involved here and I believe they're expecting their 3% each. 

I have never purchased an investment property before (although I do own my primary residence), let alone done a seller financing deal. Can someone walk me through the thought process I should be using when constructing the offer? I'd need the interest rate to be roughly 5% to breakeven on an interest-only loan, and was considering a balloon payment in 5-7 years. I know that interest rate is WELL below market. So maybe this simply won't work. 

The seller is highly motivated to sell and has already knocked their price down 6% since listing it 4 months ago. I'm open to all suggestions, advice, and criticism. 

[Ryan Kelly]

I actually think it is a benefit to both parties to have professional representation to assist the seller and buyer with these types of transactions. You mentioned you haven't purchased an investment property before or been involved with seller financing transactions. I've worked with many investors in seller financed transactions and an experienced buyer agent would be extremely valuable to you. It sounds like you could have a promising deal, so lean on your experienced agent for guidance and go take action!