Seller Financing Concern...

[Raden Mantuano]

Hey everyone,

I've come across an opportunity in the Los Angeles area for a seller financing deal. Based on my conversation with the homeowner, its looking like a 0 down, interest only deal, fully amortized in 15yrs, which in my eyes is a STEAL. However, the reason for my post is due possibly a common situation for most trying to acquire properties outside of traditional banking, especially their first rental property. I don't have the best credit and have accumulated some debt during these years, so I was wondering with the amount of debt i've accumulated from my young and immature days, does the debt I assume with this deal become a part of the current debt i have now? or because of the seller financing it, it sort of stays under the table in a sense? Based on numbers and net worth, let's say I have $20k in debt (that's including student debt) and i acquire this property fro $350k.. does this make my net worth NEGATIVE $370k??