Does this work and is it legal?

[Wayne Caviness]

I have located a property for $8k in a small town about 30 minutes from Tulsa. It is small and needs some work which I can do fairly cheap.

I also have a friend that I used to work with. She is currently paying $550/mo rent on an efficiency apartment with yearly leases for the past 6 years. Her lease is up at the end of July.

I was telling her that I may try to buy it and sell it with owner financing on a 5 to 10 year note with a payment between $300 to $400 per month. Now she wants it and says she can come up with a $2k down payment.

If I get this property under contract, can I owner finance it to her then sell the note. I would normally hold it, but being friends I don't feel it would be the best idea.

I don't have the $8k available to tie up right now so I would have to borrow enough to cover the purchase. 

My question is, if I borrow the cash then do a $375 to $400 per month owner finance 10 year note. Would I be able to sell the note for $15k or so?

If I can find a buyer would this be legit and legal?

[Joe Villeneuve]

How much dos the original owner  (current seller) owe on the property?  If they owe nothing, then you buy it from them on an option...then sell the option contract to your friend.