i am looking at possibly trying to finance a deal with some seller carry back (2nd position note).initial thoughts are:seller carrying 20% of the purchase price (39,000)at 6% interest with interest only payments for 5 years, then a balloon to pay off the 2nd position note.comes out $195 a monthdoes this sound like a typical structure for seller carry back?

I'm not a lawyer (do contact one), but if I owned a home I would either not hire a tenant at all, or pay them hourly and NOT keep them "on call" or anything else.Discounted rent as wages (think "company store") carries significant recordkeeping requirements, and yes there are people like me who are well aware of them and have lawyers ready to educate landlords who disagree with us, and their money is no object.

Total monthly carrying cost for the property is about $1,700.The gentleman would like to move his young daughter to a better school in a year or two.

Instead of having a vacancy and being out 100% income until you fill it, your other properties would be carrying the weight of the vacancy all while your tenants pay down your loans for you.

We structured a purchase money mortgage (Seller-carried loan)

@John Acklen each market carries its own vacancy rate.

Will not carry on forever, the FED has to battle inflation the only way then know how to.

I get a feeling that I might be overpaying for the property, which is OK because I have a 4% carry-back from the seller at 30-year AMM and 5-year Balloon.

The purchase price is $38700 and I plan on putting a down of 35% = $35545 and having the owner carry the remainder for 12 months with equal payments and 6% interest.

Take into consideration that they all carry risk.1.