Rental property question

I'm no expert, but I'd start just by looking on Zillow to see what nearby properties are going for just to give you a very nonspecific ballpark estimate.

more than likely he's going to need an appraisal on it for the bank. Maybe you can go ahead and get an appraisal and tack it on to the sale price

If you want a decent estimate to contemplate this check zillow zestimate and other homes in the area that are similar what they sold for recently

If you need a more exact amount because you really think you want to do this, pay for an appraisal

I have sold to my renter twice before. Awesome process. I would get an appraisal and or great idea of the market value. Seller finance and just need a lawyer to help with those docs for a few hundred bucks. Normally seller financing has a higher down payment and 1% over prime rate with a shorter length. If they ever fail to make a payment, legally, the property is yours all over again. They still make monthly payments but you can cut off the insurance and everything in your name. While you don't get all the money at once, you get more this way and cut out the realtor costs.

I like this idea

So, he keeps paying me and I don’t have to pay INS OR property tax?

Wow

U are a huge help

Could I get your email address for a few more questions

So , after my tenant and myself have agreed on a purchase price, I need to hire a lawyer for the documents?

Does the tenant typically place a down payment ?

For example, my property is worth about 266k on ZILLOW

Would u give a discount based on the fact that I don’t have to hire an agent and the seller is already in place?

Then, let’s say he gives me 20k

Should I take the balance he owes me and divide that by the months in 5 years? (60)

I’m afraid that will be more than he can afford

That’s over 3,000 per month

quote:

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Should I take the balance he owes me and divide that by the months in 5 years? (60)

I’m afraid that will be more than he can afford

That’s over 3,000 per month

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No.

A 5-year balloon mortgage is a short-term loan featuring low, often interest-only or 30-year amortized monthly payments for five years, followed by a single, large "balloon" payment of the entire remaining principal balance. It is ideal for borrowers intending to sell or refinance within five years,

Example of my last owner finance transaction.

Borrower put down less than 5%. I financed him the balance which was $145K at 9% interest. Borrower is paying me $1167 month.

I want to get the balance of my funds within 5 years hence the 5 year balloon on the note.

If the borrower takes the entire 5 years before he refinances, the balance on the loan will still be about $140K. The majority of the payments he is giving me is interest. He will have barely paid down the principle.