Deal Analysis HELP

[Anthony S.]

Hi there,

I'm in contact with a very motivated seller. I'm planning on making an offer on a 3 bed 3 bath townhouse in the East Bay, the market value of the townhouse is $370k. I will be giving the homeowner 2 options.

First option- I will offer $280k all cash. If homeowner accepts this offer, i will put in about $30k to fix and flip the property.

Second option- I will offer to pay $352,500k through a seller financing note, the note will be for $300,000 for a 5 year period with 3.5% interest rate. I will be making interest-only payment on a monthly basis of $875 ($10,500 annually) for 5 years, after the 5 years I will pay the owner $300k by refinancing with a mortgage. The plan is to rent out the property for 5 years and most likely flip it afterwards. The HOA fee for the complex is about $350 and the rents for a 3 bed 3 bath in the area is about $2200 a month.

This would be my first offer, am I overlooking anything?

Do the numbers look good?

Any feedback will be greatly appreciated.