Owner Financing Questions and Concerns

[Alfredo Alfaro]

Hello everyone,

I was looking into owner financing and have a couple of questions about it because I would like to pursue a deal with this type of financing. 

My question concerns the agreed monthly payments. When you sit down with the seller and you agree on the monthly amount due…does that monthly amount due consist of PITI or just principal?

I understand I would be responsible for insurance and property taxes but does that go into the monthly agreed amount? Or do I set that up at escrow on my own?