Buyer with Potential Seller Financing for Flip

[Danny S.]

Hi all,

I have a "deal" that has been presented to me and I would additional thoughts and perspectives regarding the terms and such leveraging seller financing.

The property is a single story, SFH 4br, 2 bath (no garage), rehab is $50k.... $85k which would include converting a space to a 2-car garage which would become a 3 bd, 2 bath. ARV w/o garage is $330k, with a garage is $350k.

Seller wants the terms below:

1) Price $210,000

2) Down payment of 20% - $42,000

3) Interest rate - 12% per year, paid monthly

4) Term - 6 months, but can extend for 6 more months for fee of $2,000

5) Personal Guarantee

6) Owner to draft documents, run credit credit, etc.

As usual, I'd have it inspected, run title, and obtain an appraisal.

Thoughts?