Quote from @Hector Espinosa: Hi,I'm negotiating a seller financing deal which may be my first one and would like to ask for some advise about and what are advantages and disadvantages about seller financing deals.These are the seller financing terms:House Price: $330,000.00 USD​ (Sellers still owe ~$301,000 USD)Down Payment: 5% = $16,500 USD​Loan Amount: $313, 500​ (Monthly payments will be amortized as a 30 years loan​)Interest Rate: 4.531%Balloon Loan Term: 5 YearsMonthly Payment (P&I): $1,594.24​Closing Costs:  ~$3300 ​Zip Code: 74105Observations:       * HVAC requires an update but pending to inspection (replacing with a new one will cost ~$10,000 - $15,000 USD )     * Expected Rent Income: $2,000- $2,300 but this is has been really complicated to get a good estimate because is all over the place in the different sites I have checked

The ideal home price for you will depend on: 1) downpayment size 2) risk appetite, 3) preference for more cash flow or appreciation.Given our price points, our investors need to have 35-45K to start, on average.The typical cash-on-cash return on our properties net of loan payments, insurance, taxes, and property management fees is 6-8%.Ultimately, you can obtain financing from any lender, although we have partner lenders that can provide very competitive rates.

unless its a VA loan, you cannot.

Do you ave 2-4 lenders that you've built relationships with and do you understand their terms for purchasing the land and the construction loan and the exit strategies if you need to hold the home a while before you sell to a buyer? 

or  were you trying to apply for a loan to buy a home

or in the 700's because most people think they have perfect credit.You also have to know occupancy type like primary, vacation, investment, how many units, LTV/CLTV, Term, Fixed or Variable, Prepay or No prepay, Loan size etc.

While it’s a helpful quick filter, the bigger picture—appreciation, tax benefits, loan paydown, and compounding growth—often tells a much better story over 5-10 years.The key is balancing cash flow and long-term gains.

This worked well as we didn't need loans.  

I've never heard the 25% thing before, but any difference between FMV and sales price would technically be considered a "gift" with potential tax implications for your parents.You can avoid most seller costs as there's no reason to use agents in this case.As an FYI: I always recommend avoiding a FHA loan, if you qualify for a low-down payment conventional loan.

The property is in a B-class neighborhood, and while I’m comfortable managing coliving setups, I’m curious about any potential nuances around refinancing and insurance for this type of property.Are there specific loan types or lending policies I should know when refinancing a rent-by-the-room property?