Would Seller Financing Work for ME?
Details.
1 rental property great renters, they are interested in buying it one day.
2. I owe 90k on original 100k loan @ 5% =$535 or $735 (payment + tax + insurance )
3. Currently rents for $870
4. Current market value on zillow is $130k
I just had 3 rd baby and thought seller financing might work to lessen the landlord load while still providing passive income.
My thoughts are sell for 135k with $10k down at 6.6%=$800 or $1000 ( payment + tax + insurance )
I have heard about banks calling the loan at sale ? would that effect this situation?
Does my existing loan need to be much less or is $90k ok?
Can the loan be for 30 years or is 5 to 20 more common?
Am i missing other cost or fees?
I like the idea of increasing cash flow from $135 a month to $265 almost double.
At this point trading the possibility of long term equity growth for increased cash flow and decreased phone calls at 1:00am seems worth it at this stage of life.
Thanks in advanced and sorry if this is a silly idea.
Scott
P.S. even if i don't go this route on this deal i would like to learn more about it. Any good books or resources would be a big help.