I own a second house, inherited from my mother. Fully paid for. I've been renting it to the same tenant for the last 12 years. They've been very reliable -- have never missed a payment, and generally take care of the place.
They made me an offer on the house and proposed a private, seller-financed sale and I'm trying to figure out if that's a good move for me.
The offer: 675K with 175K down, rate: TBD, term: TBD. it's on Zillow for 721K (but trending down a little)
Lot's of questions!
- How much can I expect to save by making a private sale?
- If the contract is solid, my risk shouldn't be too great, correct? If they default, I would get the house back?
- Assuming I sell it for 675K, besides closing costs, what other real costs are there when selling the house the traditional way? EG, taxes?
- Am I getting this right: If we make a seller-financed deal, I would charge them interest on the 500k they're paying off. So, conceivably, I'm making about 5% on my 500k. If I took, the 675K up front, I could just invest that money. I can assume I would make more than 5%, correct? (With some long-term, low-risk investment)
- If I don't do the deal, they will probably move out (they're ready to buy). So, I would be faced with some upkeep costs (needs a paint job etc. Wear and tear stuff). If I do the deal, they would absorb those costs and I would save that money. Is my reasoning correct here?
Thank you for any and all help. I'm new to all this. If there's anything else I should be aware of, please let me know!
Submitted March 24, 2019 at 11:01AM by _jbd_ https://ift.tt/2HGUelc
