Seller finance deal

[Freddy Pettiford]

Hey everybody.

I am in conversations with a seller who owns her home free and clear. She initially wanted to do a lease to own on her property. She has agreed to do seller financing on this property at these terms:

Asking 100k

10k down

8% , 30 years. (She said 8% is lowest she would go)

With these numbers I would be paying her $885 a month.

Rents to be conservative would be $1100.

I would have a property manager. So that's $110

That is a cashflow of $105

Do you guys see any other way to structure this deal?

I was hoping she would take less down but If I put less down that means the monthly would be higher..

My goal would be to have a $300 cashflow at a minimum..

I expressed this to her but she didn't seem to want to deviate from the loan calculator that she was using.

[Edward Maier]

could also do a refinance with a bank that would cut the interest in almost half depending on market you could just use the owner financing to secure the deal and wait till you have more money.   what is the problem with bank financing? you could always go fha 3.5% you could purchase a multi family with positive cash flow and use the additional income for your next purchase