If you are going to have to put 20% down you might as well go traditional finance and lock in a lower rate.Especially on commercial properties.Most buyers I work on deals with want to have owner finance of 10% they put down 10% to 15% and get the rest financed with a commercial lender.It all depends on your hold times.The risk is that if you owner finance and it comes due in five years what will be the interest rate at that time??

I had a tenant tell me they only wanted to pay 600 a month when rent is 850.They said they will move.I said that is fine with me.250 times 12 is 3,000 a year in lost market rent.So if I took a tenant at 600 times 12 is 7,200.Instead I have a tenant at 850 times 12 is 10,200.So I can have it vacant for almost 4 months and be at the same point.Plus the past tenant has a judgment and I will have a company garnishing their wages for me.Another item to consider is the cost to get it re-rented.If the tenant has lived there a long time then fix up costs will be high compared to a newer tenant you have to get out unless they had animals,smoked,etc.Once you file eviction on the tenants most likely they will not pay anything as they are saving to move and go somewhere else.The down side of a vacant unit is vandalism and crime,more maintenance,and worrying about busted pipes etc.Hope it helps.

And if he ends up getting traditional financing later on so be it, but it won't be anytime soon.hope it works out for you.regards,chris

Well, let's say an agreement is reached to transfer the home via some sort of owner financing.How about a second signed agreement that states:"Just in case, because of regulatory or other reasons, a "more traditional type of sale" is required to transfer said property.

As the values of these items changes, the % would change also.

Once you've purchased the home and addressed all the major items, and you're confident of the maintenance record of the home you can come up with an estimate for your repairs.

Numbers:Beds: 3Baths: 2Sqft: 1,424 (Will be 1600+ with finished sunroom)Type: Single FamilyYear built: 1955Cathedral ceilings, big 2 car garage in great shape to the rear.Asking: 79,900 (priced dropped 10k as of 10/20)Pictures available here http://www.zillow.com/homedetails/6105-Lockamy-Ln-Norfolk-VA-23502/79225876_zpid/#{scid=hdp-site-map-bubble-address}Repairs: 50k-55kSome big ticket items: Will need 50% new sheetrock plus insulation.

You may be able to count on fairly consistent numbers similar to what was given, but you have to be prepared to have 0 or negative cash flow every now and again when a big ticket item happens like the tenant who not only needs to be evicted but destroys the apartment before he goes.

You went through the effort of itemizing the needed repairs, I would't expect anyone to do a take-off for you on this extensive list.

Their prices are absurdly low and the techniques they use work… Luckily most visitors will quickly leave the site to find a company that speaks the traditional English language.