Note Holding First Time

1 Reply

I just recently bought a property for 118k with a 30 year mortgage.

I was approached by an "Investor" who is looking to purchase my house for my asking price.

I think we call this Wholetailing? Where I bought it and sell it as is.

Anyways.. 

The Terms:

40K down (cash) with $900  a month for the length of Paying it back and no interest

My mortgage on the property is $540 for 30 Years @4.3%

My numbers show it will take 11 years to pay me back on his loan.

So I will be cashing flowing  $360 a month for 11 years.. 

Then I would have to pay 529 for the next 20 years.

or

My Mortgage loan is 89k I put the 40k Towards the house  and Cashflow for $360k a month for 4.5 Years and then cashflow 900 for another 6.5 Years, No Tentants, no turn over costs and no filling vacancies. 

( This property is out of state)

Ideas? Should I do this?

If I should.. how do I move forward with this to protect myself.

I don't think it's worth it... Over the course of the loan it comes out to about 195k if I don't pay it off early... 

I am going to stick being a buy and hold investor vs the easy way out. 

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