2 Bedroom Buy and Hold or Seller Finance flip?

[P. Martin]

Found a 2 bedroom built in 1999. Needs paint, new carpet and the cheap thin kitchen flooring replaced(Not sure what it's called but it's peeling up in the corner). 

Asking price is $65k.

Average rent in the area would be around $800 a month.

Close to downtown. 

I have equity/credit partner willing to secure financing.

Buy and hold it? Flip it on an owner finance deal? Pass?

[Josh Caldwell]

I could make a good case infavor of selling it with owner financing terms. 

With terms, you can sell the property above market price and charge interest on the entire amount.   The buyer is responsible for all repars, taxes, etc.  So you have an easy profit center.

You also have the posiblity that the buyer will default at some point during the purcahse. In that case you get the house back and you can resell it without giving up any of your equity.