Any case where owner financing makes sense?

[Shelley Austin]

Purchased property for 390K, put 15K into rehab. Home now worth 550+. Would like to sell and capture gained equity, also cash flow is not great and the house needs more work. Long-term renters want to buy at 550 as is, but can't qualify for conventional financing. We have a balance of 266K on the mortgage @ 3 percent interest. Mortgage payment is $1671/mo. 

[Chris Seveney]

@Shelley Austin

While it sounds great - if they cannot qualify for conventional financing will they be successful and pay you?

If they do not qualify because of poor credit or income issues compared to being self employed etc there are differences - but typically people don’t qualify due to poor credit and people will seller finance to these borrowers thinking they woke up at a holiday inn and got a finance degree when in reality they repeat their past mistakes

Remember the definition of insanity is doing the same thing over and over again expecting a different result