Thoughts on owner financing as the seller
I was approached by the renter of a commercial property I own about my willingness to sell the property. It's a nice commercial building that I bought for $80,000. I put about $40,000 in it. I was originally going to use it as a business venture and when I decided not to do that I kept it as an investment property. She's renting it from me for $1650 a month currently with 2 years left on the lease. I told her it's not "for sale" but that I would sell anything for the right price. I shot a number out of $290,000 and she didn't freak out. The one catch is that she would only be interested in owner financing. Curious what people think about doing deals that way and whether it would be worth it. She indicated 5% down would be the best she could do. To me that would indicate I need a higher interest rate but I don't have a good gut feel for whether owner financing something is a good strategy. Any general thoughts?