BP Community Please Offer Feedback on Seller Finance Deal....

[Brandon Sturgill]

I am structuring a seller finance deal and wanted to check myself on some numbers before offering.

3-units (1 SFR and 1 duplex)

C-class properties

Typical Cap Rate for area 8-9%

Combined Monthly Rents $1,500 (no landlord paid expenses)

Property taxes $1,800/ yr. (all 3 properties)

Figures:

Purchase Price: $75,000

Down: 3% (2,250)

Note: 10yr.

Am Schedule: Interest only years 1-9/ balloon on yr 10 for remaining principal

Payments: Interest only 10% simple

Monthly payment: $606

Consideration: Property management 10% of rents Capex 10% Vacancy 8% Repairs 10%