Posted by Jeff H. CT on July 25, 2003 at 21:46:15:
Buy it for $125K and have him hold a note (whether it is a friendly note or a real lien) for $20K. That is 16% down, more than enough for any bank loan. Your loan from the bank will be $105K @ 5.75% 30yrs= $612.75/mth.
Have a seller give you a concession at closing of 4% ($5K). This money will pay your closing costs and then some.
After you buy the house, open a HELOC(home equity line of credit) for $20K (140K-120K). That is your down payment for your next deal. Good Luck