% interest to charge for Land Contract
A tenant is interested in buying the house he is renting from me via Land Contract. I have not done this before and would like some opinions on what to look for and how to set up the payment?
I am curious what common interest rates should be charged for a land contract - Credit is not the best, they cannot apply for a mortgage so I will finance. Is 6% too low, 9% too high? What about the price of the house? Should I charge a higher price because of the risk I am taking with selling it on Land Contract?
Should I be cautious and collect money for insurance and taxes any pay it myself of let them pay it and I will only collect interest and principal?
Any thoughts are appreciated...as you can see I am new to this and maybe some of these questions are trivial but trying to be on the safe and legal side.
Thanks in advance.