All Forum Posts by: Annalie Cao

Quote from @Annalie Cao:

Hi all,

I have this property located in Huntington Beach, CA and the owner is willing to do seller finance of 1.2 mil with a 2 years balloon payment. He still have a mortgage of 800k, and his equity is 400k. He wanted 200k down payment which is 17%, and no interest. How can I structure this deal better to use as vacation home. It's currently making roughly $77,300 in gross income for 2023 number with an uncompleted dirt backyard, if I add a nicer backyard with jacuzzi and more backyard activities

It could potentially increase the rental income.

One way to structure this deal better for use as a vacation home is to negotiate a longer balloon payment period with the owner. Instead of a 2-year balloon payment, you could try to negotiate a longer term, such as 5 or 10 years, to give yourself more time to generate income from the property before needing to pay off the remaining balance.

Additionally, you could also propose a lower down payment amount to the owner. If you can negotiate a lower down payment, it would free up more cash for you to invest in improving the property, such as adding a nicer backyard with a jacuzzi and more backyard activities.

Another option could be to negotiate a lower purchase price for the property in exchange for a higher monthly payment to the owner. This could help reduce your initial investment and give you more flexibility in making improvements to the property.

Overall, the key is to negotiate a deal that works best for both you and the owner, allowing you to use the property as a vacation home while maximizing its income potential. Additionally, you may want to consult with a real estate attorney or financial advisor to ensure the deal is structured in a way that is advantageous for you.