Questions about Selling with Owner Financing
Fellow Investors,
I would really appreciate your advice on this matter. A tenant of mine is very interested in buying (with owner financing) a property that I own. I've never sold a property with owner financing. Below, I've listed my concerns in hopes that some of you can provide some guidance (based on your knowledge and experiences).
My Concerns:
- The loan will continue to weigh against my Fannie Mae 10 property limit.
- I will have to keep detailed records for principal and interest paid.
- I will have to 1099 the Buyer each year.
- I will need to verify that taxes and insurance are paid each year.
I admit these are not huge concerns. And, I can already think of some ways to address each of these items. That being said, I would love to hear how some of you have handled each of these items. Also, if I am leaving out any items that could potentially be a challenge, please add them to my list (with your advice on how to address).
Thanks for your help!!! -Adrian