Sure, it’s easy to get nervous about over-leveraging... no one wants to feel like they’re juggling flaming torches while balancing on a high wire.

SEEKING feedback from other Sellers of rental or primary residence homes who have dealt with SINGH Development Company agreeing to Seller Carryback Finance terms and "the end result" from beginning to end of contract terms.The proposed offer is for 7 years, $600 monthly payment to Seller, balance due at end of 7 years, 0% interest as final overall price paid to Seller after 7 years from date of closing is inflated to $270,000.

Quote from @Elliot Angus: I recently came across an interesting opportunity and thought I’d share the details.Mortgage Details:Outstanding Balance: $70,000Fixed Interest Rate: 3.75%Monthly Payment (PITI): $950Loan Maturity: May 2045The property’s current market value is around $225,000, leaving significant equity on the table.Tenant-Buyer Situation:The property is currently occupied by Rent to Own tenants.

He *seems* to be making an effort to square people away and talks all sincere, but everything we've seen to this point I won't trust a word of it until my balance in full is wired into our checking account.

When you are on the commercial side of the bank, and borrowing on the bank's balance sheet, they have a lot more flexibility to how they handle loans.  

Mortgage balances go down and eventually get paid off. 

To get this amount through a cash-out refinance at 80% LTV, the home value must be at least $453,800 after one year.Based on your report your ARV right after reno is $425,000Add a 8% home appreciation for one year $34,000Estimated Home Value After 1 Year:$459,000Assuming a refinance after 12 months with a property value of $459,000: New Home Value (Post-Appreciation): $459,000 New Mortgage Amount (80% LTV): $367,200 Existing Debt Balance after 12 months: -$360,000 (because you have been paying interest only) Assuming Bank fees on New Mortgage: - $200 Cash Pulled Out: $7,001, allowing you to recover to pay only 7k on your initial investment of $29,790, leaving $ $22,789 in the deal.Many new investors mistakenly believe the BRRRR strategy ends after the cash-out.

If the amount paid to purchase an existing note is below the principal balance or more correctly, the unpaid balance, the investor will benefit from an early payoff to the tune of the discount.  

Home values typically fall between $150K–$200K, which provides a solid balance of affordability and appreciation potential.

Focus on a market that has a good balance of cashflow and appreciation (some markets have great cash flow but very little appreciation or vice versa).