Mixed Use 1st Investment Property - Glencoe, MN - seller finance

[Richard Appleby]

Hello BP Community!

I have looked at this property (https://www.realtor.com/reales...) and I have asked the sellers if they would consider seller financing and they have asked me for my terms. Any thoughts on options to suggest to them would be appreciated!

A quick background on the property - 1900 home that is REALLY well taken care of. They remodeled in 2004 and there is no evidence of it being such an old home except in the basement - but even there it's the best century home basement I've been in - very clean, organized, dry and no smells.

The main level is rented out to a local radio station (1 room) and tax professional (2 rooms). The upstairs has a separate entrance and is currently rented $125 below market rent. When I ran my numbers, I ran with increasing the rent $50 right away and then over time adjusting it slowly with the tenant to market rent (or market rent to a new tenant if this one left).

It's not a cash flowing property as is when considering variable expenses, but is appealing to me because of the maintenance already done, purchase price, close to home (so I can work on it with my kids to teach them), and with some businesses I can do 2+ year leases for a little more stability.

I would like the seller finance so I can keep more reserves as I'm also looking at a STR cabin purchase. This is not a questions of not having reserves - the bank has approved me for both purchases simultaneously if needed. I just feel more comfortable if I could keep more in the bank.

If I missed any information that you would like to know, please ask! I have attached the seller's financial from the building (as a photo) as well as my BP analysis (as a link) below.

Thanks in advance!

Richard