Possible Owner Finance Deal

[Terry Royce]

There is a property in a neighborhood I already own 2 properties in and am looking for others

I proposed owner financing to a seller I came across and they are open.

He said he wanted 20% down, 6% interest w/ 5 a year balloon. Taxes and insurance would be $168 per month additional.

The property was just rented for $1,100, and you could say it is "turn key", however, I would updated the kitchen and do some other items totaling apx $4-7k. I think the upgrades are worth it based on my experience, because I should be able to bump the rent to $1,250 and have less vacancy as the nice properties in this neighborhood rent quickly. My last one had 2 applicants in the first day...I know thats all "current market conditions", but that's what it is.

Anyway , I'm asking for input regarding the financing. I have not done any negotiating yet, so the terms could change. but I'm always excited by owner financing as it makes the purchases smoother IMO, and you don't have to refi quickly, which saves money, and the interest is usually alot cheaper, and includes principle.

Thoughts, input, suggestions?