Investor · Gig Harbor, WA · Member since 2013 · 9 posts · 2 votes
I have a duplex and one of the tenants is interested in buying it. They've been excellent tenants for several years and both have good jobs. I don't mind becoming the bank if the interest is right - for me that would be 8 to 10 percent.
We have not discussed down or term. Am I thinking too greedy in for a 8 to 10 percent interest rate for 10 years with a balloon? Or is that about right? Any help is appreciated.
If they are buying from you they must be unable to get financing. Unsecured lines of credit in their situation would generally be in the 10% range and I would have no problem charging that rate.