Assuming loan and owner financing questions

[Adam Jones]

Need help with the structure of a deal.

I’m trying to buy a duplex across the street from a duplex I already own.

I spoke to the owner and she owes 175k on her loan and I’m purchasing the property for 800k. I ask if she would do owner financing and she said she would for one year at a 4% rate which is cheap for me. I need to do some work on it to get it rental ready and I have 3 flips going and I’m tight on cash. the property is worth 975k because I just had my model match refinanced and that’s what it appraised for. So I will renovate and do a cash out refi and it will be a great deal. But I need help structuring my offer and need the bigger pocket minds to help.

Option 1: take over her payments and give her 80k down, pay the mortgage?

Option 2: get hard money loan for her loan to pay it off?

Option 3: get conventional loan for her loan balance?

I don’t know exactly how to do this one thanks for the help In advance.

Adam

[Mark Durham]

My first offer would be #1 with these modifications: Take the 4% OF for 1 year, make the pmts. on her 175K with $0 (zero) down. If she won't take $0 down, I'd try to negotiate as low as I could. I would make the payments to her lender (not her) to be sure they're being paid.