Should I offer sellers financing?

[Dan Leyden]

Hi All,

First post here, hopefully it's found the right Forum. I want to see what you all would do in my position...

Here's the story:

Bought a house in need of total rehab (floors, kitchen, walls, ect) for 41k cash. I did the rehab myself in the last few months and it has turned out to be a very nice property compared to others in the neighborhood. I have no debt on this property and could make a great return if I wanted to deal with renting (almost 20% ROI).

I have been approached by a neighbor who wants to buy the property(third on the street), but will require financing. I have run comps and set my price at 130k which he has found reasonable but will need to get financing. Financially it makes much more sense to rent it for anything less then my asking price.

My goal is to continue to flip houses and rent and hold in a better market.

So here's my question... What would you do?

Offer financing for 6%+/- with a 20% down payment on a 10 year note?

- Would slow down my goal of investing more. Not sure if he would consider it.

Hope he can get conventional financing?

- Its a cold market with a lot of foreclosures bringing down the appraisal price. Might not appraise high enough.

Just suck it up and rent it?

- Great return, but will be difficult to find good tenants.

What would you all do?

Dan