Posted by Bud Branstetter on November 30, 1998 at 14:23:32:
From the sellers standpoint he is getting 3K now, 6600 during the next year and his 50K at the end of a year. If you don’t buy he keeps your money and and gets the property back. Ready to do it again. He gets FMV cash.
From your viewpoint you should get 3K as part of a L/O. An additional 80/mox 12mo leaves 1K at risk. Of course you play landlord and have to be sure to attract a qualifiable tenant/buyer. One year is not much room to find a back up. If you have nothing at risk 1 year is possible. On an owner financed deal with money and credit at risk the one year balloon is an alligator with his jaws wide open and your asset exposed.