That’s an attractive underlying payment for a $350K house. Sounds like a great deal.
But I wouldn’t throw $25K at it unless I knew exactly how I could get it back in quick fashion. Have you considered a split funding offer to the seller? See if he’ll take like $5K now and the other $20K when you cash out.
If I were in your shoes, I’d start marketing the house the day you get the contract signed with the owner. No reason to keep $25k tied up in a property for a year, which is probably not going to cash flow a very good rate of return.
Just my 2 cents. Sounds like you have a winner on your hands either way. :beer
If the owner wants cash, why is he/she not selling themselves? Even if it was put on the market for 300K for a quick sale, the owner could still walk away with almost 100K. Why are they settling for so little?