Value can increase via no rent increases if the industry is going through cap rate compression (dropping cap rate will raise value price).5 yr term baloon is almost always killer as in this case.  7 yr better, 10 yr is best.The todo in seller financed deals:- Increase value via increased NOI and hopefully enjoy free increases from industry cap rate compressoin so that when you apply for refinancing, the appraisal will come back so that the LTV being offered (70%, 75% maybe 80%) will cover the balance on the sellers note. 

If it is $300 for the rest of the year, then you got a killer deal.

@Ray Loveless I agree to talk to Planning but I also have never let this be a deal killer for me.

However, the profit potential seems to be killer with lease options which is what drew my interest to the strategy. 

The great news, the house is in a killer neighborhood and it’s got a great floor plan with good bones on a corner lot brick.  

You may not yet see the value and importance  in the advice I will give you ow.. but.. the best thing to do right now.. is get a killer domain name and set up a website targeting motivated sellers.

I do not think this was a major strategy killer, but the house sat empty during peak rental time (Summer before school started) and is still vacant at a price above Proforma.Some Observations: Closing costs came out to be much higher than the proforma estimateTaxes were spot onProperty Mgmt. fee spot onThe vacancy is listed at 4%, even though PM says I takes an average of 45 days to rent, so it’s a broad average I’m assuming after tenant leases or across all their properties.They advertise 2-year leases during the tour and most turnkeys are rented prior to closing, not the case for my property, still vacantOne inquiry has come in for a family whose house burned down, but they want 3-month lease smack in the middle of winter for another renewal, not optimalNeither the marketing department nor PM inside Reedy was very proactive as far as communication.

Really good find for a practice. run.Hope to see a killer deal from you in the next month!

Hope you get that killer appreciation because your cash flow is nonexistent .

I'm bipolar when it comes to selling my unit, one week I definitely want to sell and use the money to purchase a new home, the next week I feel stupid for even considering selling because I bought this property the right way and got a killer deal.