The deal likely only works with favorable owner financing terms and rent bumps.I'm trying to figure out if this is something investors would actually pay for before I build the automated version.

You’ll get favorable financing, build equity quicker, and keep that 4% loan working for you.

That'd help figure out if the math actually works in your favor.

The numbers work with favorable equity.  

Hey everyone,For those of you doing new construction, how difficult was it to secure a construction loan with favorable rates on your first or second development?

Quote from @Brett Robberts: I think if you increase the search size for lenders (bigger lenders), you can find ones that will give you a little more favorable terms. 

That’s the piece you really want to understand before agreeing to carry paper.On terms —• 7% over 20 years is very favorable… for the buyer• Your 15 yr @ 8.5% is more in line, but still on the lighter side for seller financing given the riskIf your plan is to sell the note, you’ll want to structure it to be attractive to note buyers:• Consider a 5-year balloon (big one — improves resale value)• Make sure you have a strong down payment documented (which you do)• Fully underwrite the borrower (credit, income, ability to repay)• Clean paperwork (note + mortgage/deed of trust done right)Also keep in mind — even with good terms, most note buyers (including on platforms like Paperstac) will discount the note, so your yield needs to justify that on the backend.Simple way to look at it:If you’re taking on bank-level risk, you should be getting better-than-bank returns.If not, you may be better off just selling outright or having a broker place conventional financing and taking your full cash now.The deal works — just make sure you’re getting paid appropriately for the risk you’re stepping into.

That usually favors experience-driven stays (unique structures, nature, views) over standard cabins. 2.

That creates a really nice price / rent ratio which is favorable for investors looking for cash flow.

But do yourself a favor and just hire a bookkeeper - was the happiest day in my life!