Easy $400/Month RE Annuity - My Latest Deal

This is a quickie but goodie.

I had been involved with a short sale for a particular property, on and off, for more than three years. The bank (Ocwen) kept dropping the ball, changing reps, etc, and the file was continually kicked down the road. Meanwhile, the resident remained in the house. I had been in contact with her throughout the process, often to coordinate BPO interiors when Ocwen would make progress enough to order one. It was evident to me that this resident wanted to stay in the house indefinitely, having expressed as much verbally and kept the house in great condition. The house was not hers, and she had stopped paying rent when she learned that the owner ceased making mortgage payments, yet this resident nonetheless continued to live there and perform great upkeep.

Only very recently did Ocwen finally bring this thing to fruition. I represented myself as buyer/realtor and purchased the property for $16,572 (including closing costs). I then sold the house to this resident for a contract price of $30,000. The best part is that she will be handling all repairs & maintenance, property taxes, and owner's insurance. I took $1,000 down payment and first installment up front - $400/month principal-only is the monthly commitment.

THE NUMBERS

After receiving the down payment and first month's installment, I had a total of $15,172 exposed, with a remaining profit of $12,028 to be collected in installments. I borrowed the purchase dollars for a low rate. The house is in perfect condition. I don't have to deal with repair calls and costs, tax payments, or insurance policies. With this slick little deal, I essentially secured a low-risk "annuity" of passive income at a rate of $400 (less minor interest) each month for the next six years.

WHAT DO YOU THINK ABOUT THIS DEAL?

-Vince