Seller Financing! How to?

[Sean Varney]

Hi all, happy new year! This is my first post; please let me know if I posted in the wrong area or provided too much/too little/inappropriate info.

I’ve found a property that I would really like to add to my portfolio but I’m currently in a bit of a bind.

Currently:

- 6 months into my first property which I used an owner occupied conventional mortgage with about 9.5% down for and am currently house hacking (renting two of three rooms)

- I have decent DTI ratio and the bank has told me they'd be happy to finance another owner occupied conventional loan once I reach 12 months of occupation on current loan (unless I want to do a portfolio loan with is out of the question in Boston as it requires 20% down and I simply do not have that). I do not yet own enough equity in my first property to take out a HELOC.

- Looking for folks who could share their experience with seller financing. I think that is probably my best bet but I’m open to other options / thoughts. This unit does not need major renovations, if any, before sticking tenants in it.

- Property is listed for 629k. Conservative estimate on monthly rent ~3700. Believe I could get the property for less than asking due to length of time on the market and the benefit of seller financing being that the seller collects the interest payments (or so I’ve heard).

*TLDR = need help financing a rental property while stuck with another 6 months of owner occupied loan; very little liquidity available*