How to analyze seller financed/subto deals

[Justin Pumpr]

Hey all,

I've been watching a lot of subto and seller financed videos, but I'm still unclear about h ow you analyze and structure the financing side of this. A couple of examples:

1) Seller Finance (I'll use easy numbers)

Purchase price $100,000. $50,000 in repairs. ARV of $200,000.

How do you structure this deal? Say the seller finances the full $100,000 at 0 down and 0% rate (I'm dreaming, I know). I then need to get a $50,000 loan to rehab. I can then take out a new loan for $150,000. Do I do this, or do I just cash out the $50,000 to pay off the rehab loan? If the latter, how do I go about having two loans?

2) Hybrid model

Purchase price $150,000. The seller has $50,000 left on their mortgage and the property needs $50k in rehab with an ARV of $275k. I get he deal subto on their existing mortgage and the seller seller finances the remaining $100k. I then need another $50k from somewhere for the rehab, so now I have 3 loans. Similarly to above, which loans do you pay off when you refi?

Cheers!