Offering Seller Financing

[Aaron Zike]

An elderly friend of mine wants to stay in his multi, but can use extra cash each month. I ran some numbers and I can just barely break even on cash flow keeping him in it. I figure I could offer him to do basically a long term seller financing so he’d have some monthly income, continue to live in his home, and then pass the note along to his daughter in time as a relatively stress free inheritance. At face value this seems like a win-win-win to me, but I want to make sure it’s a) even legal/reasonable and b) if I’m overlooking a crucial roadblock that stops more people from doing this sort of thing. Does anyone have experience in this sort of thing? If so, how do I even go about it (if he accepts the offer)?