Posted by Mike-BC on February 23, 2001 at 18:16:32:
There are many reasons people are motivated to sell profitable revenue properties. In my case, the owner I bought from wanted to retire and move to another city to be closer to his daughter. Other reasons include death, divorce, and bankruptcy.
The seller is motviated to carry financing because the worse case scenario is that he gets his property back if you default on your payments.
I added the caution because as you add financing, your payments increase. Many sellers and realtors don’t tell the whole story when it comes to operating expenses which includes building maintenance, insurance, taxes, city utilities, heat and light, vacancies, advertising, and management fees if you use a management company. Depending on your area, the age and condition of the property and the local rental market, you can count on 30 - 50% of gross revenues to be eaten up by operating costs. What is left over is used to service debt.