Tote the note - renters want to buy the house

[John Nail]

Not sure what area in the forum this question should go in.

One of my renters wants to buy the house they have been renting for the last 7 years, but they want me to carry the note.

At first I declined, but I told him I would consider it if they could put 20% down. That would cover any repairs and foreclosure costs if they defaulted. This year the taxes on that house were calculated on $70,000. I worked up an amortization schedule - Sale price $75,000 (owner-finance penalty) with $15,000 down at 7% for 15 years. That would make his payments the same as the rent he's been paying, only the house would be his in 15 years.

Are there any penalties I should worry about such as gains per year for the next 15 years?

Are there any laws in Texas that don’t require that they should then be responsible for any repairs and maintenance issues, or is that something that could/should be in the contract.

Thanks