Seller Finance BRRRR

[Luke Schumacher]

Quick question to any one with experience or lenders out there!

Im looking at an opportunity to buy a 3/1 brick home in Denver with seller financing. Its a shorter term though, 500k at 2.5% amortized over 30 years, with a 5 year balloon, hoping to get that balloon payment extended a bit. I plan to lightly rehab 10-15 k and rent out and should cash flow nicely with ARV of 560k or so.

My question is come time for the balloon payment I will obviously need to refinance into a more traditional bank loan, with it being a non traditional refinance coming form an owner finance situation would I need to do 20-25% down to get into a traditional mortgage or would I be able to do a normal refinance at 75-85% of LVT without a down payment.

I want to fully understand my exit strategy and be as educated as possible!

Thank so much!