seeking advise. selling my rental wit seller financing

Chandler, Arizona
Real Estate Deal Analysis & Advice
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seeking advise. selling my rental wit seller financing

Juan BetancourtPro Member
Member since 2025 · 4 posts · 1 vote

i purchased a house a few years ago through seller financing for $250k at 6.5 %, I now owe $117K. Appraised value $385K, selling for $385K. My buyer is wiling to put 20% down and pay 7.5 % interest with 30yr term due in 5 years. Any thoughts or advise will be appreciated. Thanks in advance!

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  • Jarred Kuiper
    Member since 2026 · 3 posts · 1 vote
    8mo

    Would you prefer them to get traditional financing or do you like the idea of seller financing?

    0Reply
    • Juan BetancourtPro Member
      OP
      Member since 2025 · 4 posts · 1 vote
      8mo
      Quote from @Jarred Kuiper:

      Would you prefer them to get traditional financing or do you like the idea of seller financing?


       Truth is I can work with both, traditional or creative financing as long as it makes financial sense.

      0Reply
  • Patrick O'SullivanBusiness Member
    Property Manager · Phoenix, AZ · Member since 2024 · 536 posts · 206 votes
    8mo

    From a numbers perspective, this looks pretty solid, but it really comes down to what you’re most comfortable with.

    With 20% down, you’re in a good position to either pay off or significantly reduce your existing balance, which lowers your risk. The rate spread also works in your favor, and earning interest on the full sale price can be a nice upside.

    The main thing I’d focus on is the 5-year balloon. I’d want to be confident the buyer has a realistic path to refinancing when that time comes. Strong underwriting, clear default terms, and proper insurance are important so you’re protected if things don’t go as planned.

    If you value a clean exit and zero ongoing involvement, traditional financing has its advantages. But if you’re comfortable holding the note and managing the risk, seller financing here seems reasonable and could work out well.

    Interesting situation, thanks for sharing it.

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  • Juan BetancourtPro Member
    OP
    Member since 2025 · 4 posts · 1 vote
    8mo

    Thanks for your input!

    0Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    8mo

    Is this an owner-occupant buyer or an investor buyer? Also, do you plan to keep the note for income or are you only seller-financing to get it sold?

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