What to look for in owner finance deal?

[Brian Mackey]

Hello,

Potential Deal - Owner Finance

Price - 180-200k

Duplex - both sides are a 2b/1ba

Would need about 20-25k in remodeling.

One renter on one side, the other side is the owners niece that is just paying the utilities (I do not believe the owner actually wants them there at this point.)

The owner has mentioned that he’s ready to move on from it, kinda just done messing with it.

He hasn’t put a price on it but I can’t imagine it being more that 180-200k

I want to offer a decent down payment to entice him in at about 15-20k, but as far as the interest rates, balloon payment, and amortization schedule I’m not so sure.

I wanna do this deal because it is literally right across the street from me in an appreciating area and I know for a fact that I could generate at least 2k a side using Airbnb.

What are some reasonable terms that I could offer without creating a huge mortgage payment to the guy.

Side note: he is only getting $650 from the rented side. I’m thinking a mortgage of 800 to him would be worth it

Thanks in advance,

Brian