Any ideas on how to make this seller finance deal work?

[Aidan Birmingham]

Any ideas on how to make this seller finance deal work?

Duplex in West Allis, WI

(2) 3 bed/1 bath, 1750sqft

Current Rent: $925/m each (market rent about $1100/m)

Taxes: $3900/year

Sale price seller wants: $230,000

Seller mentioned wanting a 4.5% interest rate. He also is open to interest only for first 3 years.

All the numbers I ran do not seem to allow me to cash flow much with that sale price and interest rate when factoring in insurance($150/m), garbage ($150), prop mgmt(8%), capx (5%), vacancy (5%)

[Chris Seveney]

@Chris B.

Watch this video- explains it well - either get terms or price - so probably paying a lot more

Also many of these fail because the low down payment the borrower does not have the funds to cover routine maintenance, capex or vacancy.

https://youtu.be/0g9ct2dHtCg