Renting or Contract for Deed for Group Homes - Minnesota?
I realize this is a sensitive topic for the state we are in, but recently we have listed a 5 bedroom/2 bath home for Contract for Deed financing. 2 of the 4 interested parties want to use it for a group home (Home health type of situation). At first I thought as long as they can come with the down payment and make the monthly P&I payments, do I care? I spoke to a realtor friend of mine, and he seemed to think as long as they have the proper commercial insurance it should be fine as well. He did caution about fines and possibly the state assessing the property, so I suppose there may be some exposure there as technically we would still be on title until they made the balloon payment after 5 years time.
Does anyone have input into this type of situation? We have done 8 or 9 CD deals that have worked out great for all parties, but those were families starting out or guys who were self employed or divorced, etc. Never for a group home situation.
Thanks in advance!