Buy near retail, sell on seller financing?

[Brian Kempler]

Hi,

I'm currently marketing for wholesale assignments and also any lease/option or sub2s that find their way to me. I am in a cheap market where one can get 12+% cash on cash returns straight off the MLS.

As I have a fair savings and am in a market with $60,000 houses I was thinking of buying some and reselling on seller financing. I would make money on the mortgage payment, probably 80-90% LTV, and also on the refi cashout by pricing the house slightly above market. I would not expect a quick cashout though, I'm happy to hold.

Foreclosure would be a greater concern. It is somewhat but not totally mitigated by a land contract early on in my state.

I was curious if others thought this was a decent way to invest in real estate or not.