Rates are a little higher, amortization period is shorter (usually no more than 20 years) which means higher monthly payment, and it’s typically either a balloon or variable rate after 3-5 years.

Generally the most I am looking is for rent to be no more than 10% of gross annual sales and preferably the sweet spot is about 6% to 7%.No way would I front that large of a bill for a small concept restaurant like that.

Your GOAL is to get the Seller to agree to sell it to you for no more than say $105k turnkey (70% of its actual value, so you only need to borrow $70k).

In MA, even though they have a lease, a judge usually awards no more than 3 months as they assume you should be able to fill it by then.....but that's MA where they love tenants.Another thought I have is if stay, they will either move the the relatives in or start breaking things.....not worth it even if you are right.

The problem is that we've now hit the zero bound on interest rates, so no more growth through cheaper debt.

You want the annual lease to be no more than 10% of gross sales.

In either case, if they did have a previous felony, I require them to be out of prison for the 5 and 3 years respectively.For my SFHs, I don't allow more than 2 misdemeanors within the past 5 years; for the low income apartments no more than 2 misdemeanors within the past 3 years.

You could ask the seller but they are no more likely to be honest than a shady agent.

Rent = 51,600Expenses = $25,800NOI = $25,800Payment = $36,944 (100% loan, 8%, 20 years)Loss = $11,194That calculation treats any down payment as a loan from you to the property with the same return as actual mortgage.With a 20% down payment, it looks like this:Down payment = $73,714Payment = $29,595Loss = $3795Cash-on-cash return = -5.15% (-$3795/$73,714)Or, you could put the $73K into a CD at 5% and be ahead by over $7K a year and have zero headaches or risk.To break even, you need to pay no more than about $255,000.

If you're buying a house from a consumer-type, they will be just as clueless as you might be.Neither Chris Dodd or Barney Frank were big thinkers so don't overthink the statutes.Seller financing is no more than the terms that you agree to buy a property for.