Private Financing Idea

[Sean Buchner]

Hi, My name is Sean Buchner I am a college student and want to get into real estate, specifically house hacking for my last year and a half of college (to get started). I dont qualify for bank financing because I am a full time student not making money. I have a good amount of money in the bank and will make a good amount during the summer. I found a property that is listed for $140,000, I could afford an FHA 3.5% down payment but again I wont qualify. The seller is open to “private financing” Do you think offering to “rent to buy” would be a good idea? I am thinking of offering 500 a month for the next 3-5 years (400 toward principle and 100 for intrest). The 400 would pay down the 140,000 and I can purchase for the remaining amount (when I get a full time job and can qualify for conventional financing ). Assume the numbers woeK and the property cashflows while paying th 500 a month with 25% interest. Does this sound like a good idea (paying 25% intrest for a 2-3 years). No risk for owner, they make 500 a month and if I fall behind (i have the reserved that even if its vacant I can last even a full year of vacancy+more) I just hold the right to purchase while paying down the principle