Help needed on owner finance deal

[Travis White]

Pretty straightforward I guess...I'm just not very familiar with owner finance offers and was hoping some more experienced folks might be able to offer an opinion. Here's the numbers:

Purchase price: $135k

ARV: $190k

Repairs: $20k

Rent: $1500

Owner finance terms are $28k down @ 6.75%, seller reports a monthly PITI of about $1200 but I have it more around $1000.

My thoughts are that CoC isn't great @ 2.85%, neither is cash flow @ $150 after accounting for vacancy, CAPEX, etc. But the equity capture ($82k) is good on the deal. I'd love some feedback....thanks so much!

[Brent Coombs]

@Travis White, are you sure you can't get a conventional Investment loan?

ie. Normally you only go for seller financing if you either don't have the normal 20% deposit, or you don't qualify for conventional, in which case - you're at the Seller's mercy.

ie. On the surface of it, this is a terrible loan for you (and a great one for the Seller)!...