Need urgent Seller Finance Advice as a seller

[S Venugopal]

Hi Bigger Pocket-ers!

If you are experienced with seller financed loans and are able to consult with me to make sure I dont make beginner mistakes, please contact me and we can work out a paid arrangement.

I've received an offer for a rental property I am trying to sell via seller financing. The Buyer has given us an offer that we need help understanding. I want to understand:

1. If this offer is normal for this market?

2. What are the key details we need to watch out for - the gotchas?

3. What could go wrong with such a small down payment?

4. What are the normal contracts and conditions that I should use to protect both mine and my Buyer's interests?

Offer details:
1. The Buyer is meeting my full asking price and they would assume a loan at the rate 4.625%. 

2. They are offering 1.66% as down payment.

3. 5 year balloon

4. Buyer comment: I will take over the loan payments, with a third party loan servicer that will collect my payment and then pay the loan

Thank you!

S