Updated about 5 years ago on . Most recent reply
Should I owner finance my rental?
Hello everyone!
I have a rental property that rents for $2000/ month. My tenant has been there for a while and is interested to buy it by doing owner finance. I am interested to sell as this property is not really cash flowing. I still have a mortgage balance on this house at around $208K. The house market price is $290K. The buyer can put $20K down, less than 10%. With that down payment, I was considering doing 30 years amortized loan at 7.5%. Their monthly would certainly be higher than what they are paying now. Do you think it’s a fair interest rate, considering overall lower rates right now? My interest rate on this property is 4%. Any advice or insights, please! This is my first owner finance deal. Thank you!