Would you accept this seller financing offer?? Need advice

[Stuart Dean]

I purchased a property in Feb2017 for 360k. Put about 15k into it. Property cash flows about $500/month. A lot of development is going on around the property, so my agent suggested a month ago to put it on the market for 499k and see if anyone bites. I am a buy and hold and was not interested in selling, but if someone wants to pay me that much sure I guess.

Got an offer today for 412,500 with seller financing. Here are the terms:

$412,500

10% down

5% 30yr amort, 5 yr balloon

FIrst time dealing with seller financing, so would appreciate any insight. Thanks

[Steve Vaughan]

i wonder what type of seller financing? WA has a specific type that protects the seller more than a Note and Deed of Trust.  See if your agent knows what it is.

10% down in WA with a realtor will pretty much have you bringing cash to the closing table.  Nice!

If you wait until day 366, it will turn into a cap gain instead of ordinary income.  Unless you don't have  job and receive EIC, Uncle Sam wants you to sell before March 2018.  

The only entities that benefit with this sale are your agent, Uncle Sam and the state of WA.