Hi, all - I’m working toward my first deal, and I could use your help with options to acquire a single-family home that a friend of mine owns. He wants to seller-finance it for $170K at current market rates without any down payment. The house rents for $850/mo, and I think I could push it to $950, give or take - but the debt payments (30-year loan at 4.75 or 5%) and taxes and insurance would take up all of that, leaving nothing for renovations.
One alternative I’ve pondered would be to secure it and then seller-finance it to an owner-occupant. But I’m concerned that my friend may want me to pay off the house in 5-10 years, so I’d have to pass that along to a new buyer.
Are there other options that come to mind? I'm sure there are things I haven't thought of, and I'd like to create a win-win for me and my friend.
Thanks!
