Is this seller financing scenario a Good Deal?
Property details:
Class C property. Sale price $177k. Located in Lancaster City, PA
Tenant gives me $25k down with 10% interest only payments for two years then he refinances to pay me the remaining balance.
I bought it in 2016 for $86k and put in about $10k. Current rent is $1400/month but property is deteriorating fast and needs minimum $10k put into it. It was my very first property where i made a lot of mistakes but ready to get it off my hands since i now have a solid portfolio of Class B properties.
I have a few reasons I'm getting rid of it so I'd like input on whether that seller financing scenario would be good for me. The tenant has been with me for 5 years and overall a great guy. Properties in this area are sitting on the market for quite a while now so I don't know if it's worth the risk putting it on the market and then getting less than what I could sell to him - not to mention, agent commissions and all that....
Thanks in advance.