Deal analysis : owner financing 75k single family

[Shalom Benton]

I came across a deal that I think could be sweet but I just want to hear your thoughts.

75k, 10% down, owner financing with a 5 year balloon.

The property is a single-family home, 4/1, it is on the rougher side of town (C/D type) where some development as likely to happen (it is nearby universities)… The home already has a tenant, and central AC which is a plus… I like the idea of avoiding the bank, and this has been my preference for my other properties...it’s about $100 a square foot.

But my real question is the five-year balloon, at 75K, I wonder will it appraise for a refinance in four years.

TIA!