Seller-Financing Terms - Questions to ask?

[Chris McMonagle]

I'm considering a purchase of 3 properties, with one caveat being they need to be seller-financed for at least 5 years. The current owner is retiring and wants consistent income until he hits the age when he can accept Social Security. I've never done a seller-financed transaction, so wondering what questions to ask and if there are specific risks with this type of loan? Any input would be appreciated!

Here are current details:

10-12% down

Fixed Rate consistent with current mortgage rates

30 year Term with expectation I would refinance to a conventional bank mortgage at year 5

No loan origination fee or PMI to pay

Thanks!