buy w/ owner financing/sell lease to rent

[David Nussenblatt]

Hi All. I am new to this and have little to no cash to speak of. I am going to lay out my plan here and if someone can let me know if this seems like a good plan or not and why I would greatly appreciate it.

1. Find a FSBO that will sell with owner financing. I would take a deal with a 5 year balloon payment with plans to have the buyer/renter buy inside that time frame.

2. Since I have little to no money to give the owner as a down payment, I can either find a private money lender to lend me the down payment or try to work the deal so that the down payment would be due 3 months after the deal so I can use the down payment from the rent/owner I find.

3. I could offer the seller 90-95% of value since I would make money on the renting side and since the sale would be 3 years down the line I would sell it for 105 - 110% of current value.

I am aware the any rent from the rent to own cannot go towards their purchase, I must keep that separate. I will get an attorney for the deal and will have to have the house appraised and make sure there are no liens or back taxes owed. My concern is what I DON'T know. I am a single father and work 2-3 jobs and cannot find down the line that I screwed something up just because I was ignorant. Any and all help would be greatly appreciated.