Seller thinks as is condition is around 75k. Based on recent sales in the area, I think it could appraise around 80k-85k. The average sale price in the area is $69,700 and the county assessment is $63,900. Based on the pictures of the interior and the exterior condition, the house doesn’t look it needs hardly any work, if any at all. We drove past the house also and the exterior of the house is very well maintained. I would like to keep this as a rental if possible.Seller wanted 69k as her lowest offer and she is willing to do seller financing. She wants full payment in 5 years and 5% interest OR she is willing to go down to $64,500 if we pay cash. She is getting rent for $1000 a month. She said the tenant has been there for 7 years and has never been late and pays on time every month. Taxes and Insurance is roughly $212.55, I factored in $100 for property management fees, and $150 total for vacancy, capital expenditures, and repairs. Her one objection is she has done seller financing before and had difficulties with getting payment on time so she wants to know how we would handle this. I don’t know where to go from here to make this deal work for me. I was playing around with the idea of paying cash and then getting someone to finance a mortgage for me or doing the seller financing for her terms. I am unsure how to figure out a balloon payment in 5 years with 5% interest though. We would like a cash flow of $200 a month but don’t want any less than $100 per month. I was gathering that she would prefer to have the cash and be done with it but she is open to options.
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