Owner Finance do's and dont's

[Timothy Riley]

BARE WITH ME HERE:

Im debating selling a house - and if i do it will be with "Owner Financing".

The reason is i have buyers that can take it as is at a decent price for under the minimum bank loan of $50k. It needs about 15k worth of work to be perfected but it is livable as is and the new owners can do this and that every two or three months as they feel fit.

Im using the financial spot im in with three unrented properties:

Property 1 (the one that might be for sale)I had this place for years and have made my money back along with nice profits.

paid for - 15K to rehab $700 potential rent if i were to keep it.

Property 2:
I own and plan on keeping as my home until property 3 is complete - 6K to perfect $8-900 potential rent when that day comes.

Property 3:
I just picked up and want to keep because it will be valued more than the other two when complete:

$11,500 no intrest mortgage at $500 a month. 20-30K to rehab to perfection.

The sale will basicly free me of that property and pay for the purchase of property three along with the rehab work of 2 & 3.

What is your take on owner financing and it's process? How would i determining the best loan terms? What's the process of forclosing on a buyer as oppossed to evicting a tennant.