@Victoria Townsend Yeah, balloons are common on owner-carry, but negotiate what is best for YOU. The creativity that you get to exercise in negotiations (especially on owner-financed deals) is one of my favorite parts of REI. My deals were both asking $50,000. I just offered asking price because the TERMS of the note were where I needed to do the negotiating (I just needed a low monthly payment). One was $5,000 down. The owner wanted higher monthly payments and a faster payoff than I could do. For the deal to work for me, I needed $375/month payments, so he ended up agreeing to extend the loan a few years so I could be at my lower monthly payment. 10 or 12 year loan (can't remember). Rents for $800/month.
My other owner-finance was asking $50,000 with $10,000 down. I only had $7,000, so I talked them into letting me just pay an extra $200/month for the first 15 months. So my payments were $510, and then dropped to $310/month after that, where they'll be for the remainder of the loan. No balloon. Just a 12-13 year full amortization schedule. And it rents for $750/month.
I'm about 4 years in on both.
I think both were just negotiated over the phone. A couple calls with each owner.
