Owner Financing and House Hacking

[Blaze Prax]

I may have the opportunity for owner financing on an unlisted home about 20 minutes out of Charlottesville VA, in Keswick. I would love advice on my next course of action, I have evaluated the property and believe the market value is about 300k. However, upon evaluation of the property, it will have a negative monthly cash flow at its market value and determined rental value. I will be converting the basement into an in-law for me to live in and will be renting out the top floor. I am thinking of offering 275k to create a negative cash flow of around $500 /mo. My thinking is, that I will have a place to live for only $500 /mo and I will be creating equity within the property. I believe I am being conservative with the rent in the area and want to know if I need to offer lower, walk away, or offer 275k. If I make an offer, what is the first step in the owner financing process, there is no realtor involved and I will definitely get a lawyer involved but do not want to do so until we have agreed upon a price. Your thoughts are appreciated!