Single Family BRRR

[Dan Flock]

Single family home on the outskirts of San Marcos, CA. City has a phenomenal school district and is often regarded by Forbes as one of the best places to live in California for families due to affordability yet proximity to San Diego. House is not on the market but approx 1,100 sq ft on 0.75 acres with its last face lift in the early 2000s. New appliances, flooring, paint, fencing, and other aesthetics needed. Estimated about $30k of rehab. Current estimate on the home is $700k however with work needed, let's just use $650 as the ideal #. My goal would be to also put an ADU on the property to significantly increase the property value, with the end goal of selling the property with a significant take home delta.

I am active duty military so will only be here for another 2ish years, which allows me to purchase/fix/flip without having to pay cap gains taxes due to living in it for 2 years. My question/analysis hold up is in the #s. If purchased via conventional/VA loan for $650k at ~7%, my monthly would be about $4,300/month before insurance, taxes, utilities - so a pretty high carrying cost. I'm currently running seller financing scenarios but am hitting a roadblock where I can sell the house after 2 years if I use seller financing due to the bank holding the title. Does anyone have suggestions on terms that could work via seller financing that they have used to Brrr ? To my understanding it would only make sense to seller finance if I would look to hold the house for a longer term. Appreciate any help/advice! Cheers