I recently purchased a single family home that had a separate parcel of land on the property. I am financing this property. I am currently renting out the single family house and the neighboring house wants to purchase the parcel of land from me in a rent to own contract. We have came to the terms of $3000 over 36 months charged at 12% interest. So he will make payments of $114/month until this is payed off. How do I go about structuring this? What documents do I need to fill out to make this legal and credible?
Any help is appreciated as I am completely lost in this topic.