I have a home that I own subject 2 in Atlanta, GA, however I haven’t filed the paperwork to complete the transaction w/the legal office here in Georgia yet. And now I have someone that’s interested in purchasing that property using seller financing. What should I do? Can I use the law firm to close both deals on the same day? Do I need to have the home inspected before we can proceed with the transaction?
I pay $606 per month on the mtge, tax & insurance included, the buyer will purchase the home for $75k w/$7500 down @ 9% on a 30 year note w/a 10 year balloon. Do the #s work on the deal to cover my monthly? I may be calculating it wrong, but the buyer said it comes out to about $700 per month, but when I calculated it it was more like $550 per month.
Also, with the same home, I have a renter that I would like to do a month to month lease with that would like to move in this Mon, Aug 21 @ $800 a month. Should I allow him to move in & inform the buyer that they have a renter or should I cancel the lease agreement with the renter? All the paperwork hasn’t been signed by the renter yet, just the application.
His principle and interest comes to $543, but your $606 includes that plus tax and insurance. What is the amount of your principle and interest within that $606? Once you know that, you can see what your spread is.
One thing to think about is that your loan-to-value is 90% which seems a bit high to me. For the risk you are taking, you could wish for a higher interest rate. Or a higher down payment.
As for the rental situation, the buyer likely has plans of their own and may want to select their own tenant. Long-term rental is better than month-to-month, in my opinion.
Those are my thoughts, but there are others on here with much more experience.