Another way is to adjust your savings so that you have sufficient funds for a down payment and then borrow the funds from your friend as a purchase money second mortgage.

They bought from the estate and then when they went to sell it they were hit with a Property Tax Adjustment.

They are going to love you and will always be looking for your next offering.Now with your self-interest in mind, once you figure out what they'll pay for a property you can adjust your price point accordingly.The main thig is that the 50% rule should be what you use if and when you ever purchase rental properties to buy and hold.

It hit $18.53 or $8.65 in 1982 adjusted rate.

Imputed tax rates are usually not a problem in seller financing and an adjustable rate, while manageable for the servicer, is not a beginner note to draft.

If you're on a sq ft basis, you might look into some thermostats that the tenant can't easily adjust, like in a commercial building with those plastic enclosures.

If you are on a 50/50 split you might need to adjust your numbers.

I have never done an owner finance so I know more information may be needed so that you guys can help.One response I got seemed to think I was taking on too much risk, which I agree after thinking about it, so I was thinking of adjusting to 10% over 15 years.Any thoughts??

The price quoted seems OK to me; since I usually end up with natural gas-fired heat rather than the electric systems you seem to be getting you might have to adjust a bit for different energy source.I'm surprised that you are being told "no permits needed" for this.

So if I bought this house for 125K, I'd end up with a profit of:185K - 55k (adjusted holding and money cost based on higher purchase price) - 100K (mortgage)- $11,100 (realtor) = $18,900I'd be happy with almost 19k in profit.