Seller financing can cause you more grief when they do not pay - as you then need to foreclose - and wear more costs.If the buyer is serious then sell them an option to buy - use the Installment approach - which means they must make progressive payments until exercise day.

Buying bank owned a financial exercise.

It's a nice property, and I think with a modest rent increase will provide a good cash flow.Problem is that I just closed on a triplex last month and that exhausted most of my "investment" account, so I'm thinking of offering a Master Lease with a 2 year Option to purchase.Off the cuff, I'm thinking this:$110,000 sale price, $7,000.00 (enough to cover real estate commission) for the option fee to be applied toward down payment if/when I exercise the option.Payments of $500.00 per month to the owner, with $100.00 per month credited toward the down payment when the option is exercised.Projected cash flow would be about $550.00 per month after all expenses and reserves, so I'd recoup my $7k fairly quickly, and I'd like to be able to assign the option just in case I get into a bind down the road.Am I on the right track?

For the last 2 years, I have been working in the medical field as a CMA.

He needs money now to help pay medical bills.

Real estate market is definitely inflated at this point, especially downtown, near the new medical campus, around the Elmwood strip and area around Hertel Ave.

It seems there is a decent amount of medical and other students in the rental market that would make for good tenants.

I suppose a medical bankruptcy means you need a few years to learn how to be smart with your cancer cells too?

The Option has an expiration date usually of two years or more and once that date has been passed, there is no more Option to buy the property.If he doesn't exercise the Option in time, everything he has done to the property is a loss to him.

First floor is under market for rent, and is a hoarder so if I do end up with this property I’d look to make some improvements and look for new tenants, ideally grad students within the UIC medical district area.Now for some more numbers, I was looking to put 5% down at a 4% interest rate putting my monthly payment right $2,600.