Buying a property using a land contract.

[Dan Smith]

I hope to buy a property using a land contract. The property is worth approximately $100,000 and the terms are 240 payments (over 20 yrs-no interest) to the seller with option to pay the balance off at any time. I figure the payments should be approximately $417/mo. with additional costs of taxes-$220, Insurance-$100, & maintenance- $100 -- adding up to $837/mo.

Property should rent out at $1000/mo., leaving a net profit of about $163/mo.

I would appreciate anyone's comments, advice or criticism. Thanks.