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Updated over 4 years ago,
Feedback on my seller financed deal
Hey guys - I've got my first seller financed deal in contract and would love to have some feedback on these numbers. This is totally uncharted water for me so any other tips or advice are welcome.
Deal specs:
ARV - 400K
Purchase price - 362K
Down pmt - 5K
Rate - 4.75
Term - 3 years amortized at 30 years
Rehab looks to be about 20K
My two potential exit strategies either lease option it or seller finance it to another end buyer. This is a higher priced property for my area and my main concern is on the exit. Given the economic situation I'm somewhat concerned about finding a buyer at this price point. At the same time I think there may be buyers that will not be able to qualify for traditional financing due to tighter lending requirements from banks in the near term.
Any feedback is welcome. If anyone has done a deal like this where they are staying in the middle I would love to connect. Thanks.