Hey BP peeps, Newbie here, in discussions for my first Seller Financing deal!

I also know a conventional lender that will do loans on properties down to about $67,000 ($50k loan amount).I always make sure clients are investing in stuff that's going to be worth $75k+ to keep their options open for conventional financing. 

In today’s high rate market, 1% ratios do not cash flow at high LTV in most markets.   50% expense ratio $2550. 80% financed at 7% (OP indicated and does not include the plumbing) P&i $3,332/minth. $5100 - $2550 - $3332 = -$782/month after achieving market rent.  

How did you finance this deal?

How did you finance this deal?

I would also make sure to know what type of financing you will be using--the traditional choice is a second home loan, but this doesn't allow you to use future rental income to qualify.

Compliance with Dodd Frank and the Consumer Finance Protection Bureau may make your concept very difficult to make functional.  

Does anyone have any creative ideas on how to structure the financing so that we aren't floating a huge monthly payment before the business even opens? 

Happy to answer any questions you may have with financing, as well as STR. 

In our line of work we have finance people and management people.