Seller financing on this property-worth looking into further?

[Steve Foth]

Property will not cash flow right out of the gate due to the 5 yr term. I believe the property has been for sale for quite some time. Price is similar to a sfh currently listed in the neighborhood.

Rent here would gross $1000 monthly(only 2/1), so it would be cf negative for 5 years in both of the below scenarios. It is in a very unique area right off the lake where all the summer festivals are. With some updating, it could be more desirable and add another 100-150/door.

Land contract scenario would have some benefits as I begin building a portfolio. It was not really what I was looking for when I saw the property in the past, but seller financing has made me take a 2nd look.

Any thoughts, suggestions, etc would be greatly appreciated.

Seller finance terms:

Selling price of $49,000; $3,000 down; 5 year balloon mortgage - 6.5% interest. $750 monthly payment (includes $550 P&I and $200 for taxes and insurance. Balloon due at 60 months:$24,740

Other contract terms are available including full payoff over 5 years (about $1,100 per month).