I am looking for advice on how to structure an offer for the following situation. I am considering purchasing these two homes for rentals.
The homes are on the same street and they are very similar homes. They are listed for 55K and 65K and are in a good neighborhood. I would think that they would appraise for at least this much. I will need to check into this.
They are both 2 bedroom 1 bath homes with around 1200 square feet-single story with a nice basement. Both have a single stall attached garage and poured basements (not block). Both have new carpeting, paint, roof, furnace and one has new air conditioning the other home has an older ac unit. Refrig and stoves are included but they are quite old. They are move in ready.
The owner would provide owner financing at 7% interest and wants a down payment of 10K for each home but said would take less than that.
I can get 100% financing from my bank at 8%.
I could get 550 and 600 rent for the homes. One is a little larger.
The owner is an older realtor and has several rentals. She is selling her rental homes as the tenants move out.
I would like to consider making two offers. One an all cash offer and the other one with owner financing. Is there any way I can make this work for both the owner and make this a good investment for myself? I would appreciate any thoughts you might have.
Brian