Seller Financed Rental Property Deal

[Rusty Scott]

Hi everyone, just found this site recently and have been very impressed with the content and the valuable community of fellow investors.

I have been a part-time investor for about 6 years now...currently own 2 SFH rental properties. I've done minor rehab on one and a bit more extensive on the other one. I've had solid renters in both throughout. I haven't put much time or effort in the business for a while, but want to get back into it starting this year, and increase my rental portfolio.

Came across this deal in the MLS.

3/1 1200SF + 1200SF unfinished basement.
ARV = $70k
Asking price $45k
Seller is willing to finance (though not sure yet on what terms)
Property needs some minor rehabbing and cleaning. ~$5k.
Rent ~$750/mo

I have read a ton over the years about buying using seller financing, but have never done a transaction myself. How should I look to structure it? What kind of offer would you make on this property?

I'm most concerned with making sure I protect myself in regards to title, etc....

Thanks!

[Jeff S.]

You want to structure the deal with the seller's needs in mind. Unlike bank financing you have negotiable items such as interest rate, length of contract (balloon or adjustments) and size of down pymt. Price is just one of the negotiating points. If your needs coincide with his needs you have a great deal. If not life gets tougher.

Start by figuring out what is most important to you. Do you have cash and expect a discount or do you need a small down wanting to leverage multiple properties. If you want to share, feedback may help you analyze.