First Owner Financing Proposal - Vacation Rental in Charleston

[Jabari Seabrook]

Bp Community,

I am looking for advice on acquiring a multi-family vacation rental property in Charleston SC. The property has two 3 bedroom houses on the lot, in which I would Airbnb one and live in the other. The owner or the property is open to seller financing and asking for a proposal. The value of the property is around $850K.

Should I base my proposal on a 30-year mortgage? How long should the terms be before I refinance? Any advice would be great!!!

[Mike F.]

@Jabari Seabrook

I just closed on an AirBnb property (Duplex) with seller financing. My terms were 20% down, 5% APR, 5 yr. balloon, 30 yr fixed. Property is brand new. Purchase Price is $320k, and it's worth $500k.

Here's some recommendations,

- Provide three offers with range of downpayment, interest rate (2%-5%), and terms.  Yes, you can do 2% if you raise the purchase price.  It can be win-win for both of you if you run the numbers.

-Make sure it's non-recourse.  

-Make sure that y'all have a good attorney that you both trust. 

-There was a good BP podcast a couple of weeks ago by a Seattle Investor that may be helpful for you. 

-Mike