2.6% interest rate with Seller Financing - Any deal makes sense

[Daniel Tanasa]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $241,000
Cash invested: $20,000

I bought this house Seller Financing with 2.6% interest amortized over 30 years with a 5 years balloon. The monthly payment PITI is about 1400 and I am expecting to rent it for about 2200 for a section 8 tenant. So I will probably make about $500/month in Net Cashflow. The house only needed only paint to make it nice and clean for next tenants. So considering the 20k needed to get into the deal and the $500/month in Net Cashflow, this deal is bringing a pretty good 30% CoC ROI.

How did you find this deal and how did you negotiate it?

I found the Deal on the market and reached out to the Agent

How did you finance this deal?

Seller Financing

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented myself as a buyer and also got a commission out of this sell.

[Daniel Tanasa]

Quote from @Wale Lawal:

@Daniel Tanasa

Congratulations!

Seller financing rises and falls in popularity along with the overall tightness of the credit market. During times when banks are risk-averse and reluctant to lend money to any but the most creditworthy borrowers, seller financing can make it possible for many more people to buy homes. Seller financing may also make it easier to sell a home. Conversely, when the credit markets are loose, and banks are enthusiastically lending money, seller financing has less appeal.

All the best!

Thank you Wale, 
That’s well said, now is a good time for anything creative that allows you to get a property without going to a bank. Especially if you’re able to get a low interest seller financing or a low interest subject to.
And the good thing is that more and more sellers are interested in doing it to because they can get much more money for their houses. 

All the best!