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What should I watch out for with seller financing?

I have asked the seller to provide seller financing in order to pickup (2) properties. (I can get one with 20% down, but I don’t have the cash to pickup both.)

I want to offer 10% down on both properties, seller to finance the remaining 90%. The seller is agreeable, but they want the terms to include a 3-5 year balloon.

I’m assuming that after 3-5 years I could qualify for both mortgages (…because I would be able to claim the rental income for that length of time.)

Is there anything that I should be mindful of?

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