Seller/owner financing property help

[David Rutledge]

I have been looking at seller/owner financing as a way to build my long term rental portfolio and I was hoping some people on here may be able to shed some light on a few areas of this that I am a little unsure about.

Most of the deals I am finding still have an underlying mortgage on them and are not owned free and clear. I was under the impression that usually the lenders can call the loan due if the mortgage is assumed by someone else in a wrap around loan etc... Is there a way to get around this? Is it possible to have the seller finance the loan with a mortgage on the home while not having the loan called due? I heard something about dual insurance? This is all very foreign and confusing to me.

Also, the vast majority of the seller financed properties I am finding have a balloon payment after a few years. I will be unable to make the full payment in this short amount of time so I will need to refinance with a bank or other conventional lender. I already have a few mortgages with lenders and I know most lenders have a limit on the amount of mortgages you can have at any one time (usually 3 or 4) Is this the same when refinancing? Is there anything specific I should be aware of as far as the way lenders look at refinancing a property with a note carried by the owner as opposed to it being from another conventional lender?

I am planning to view some properties over the next few weeks with the hope of purchasing a few seller financed properties and I want to have as much information as I can before I make any decisions.

Any help or input on any of these issues would be extremely helpful.

Thanks so much.

David