Long Distance Owner Finance Help

[Troy Havins]

I have owned a single family home for about a year and dont make a lot of cash flow from this property.  I have great tenants who pay on time and are super easy.  I live in California and manage the property myself which is located in Texas.  They are great tenants who plan to stay in this house maybe the rest of their lives.  With that as a foundation they recently asked me about doing a seller financing deal with them.  I am open to the idea, however the loan I have on the property is at a 7% variable rate and has a "due on sale" clause.  I am open to the discussion but I am not in a position to pay the loan in full if called due.  I am looking for suggestions how to navigate this situation. Is it worth the risk of making a deal with them and just hoping the bank doesn't call the loan due?  Would it be best to do a lease option? Any suggestion would help.  Here are the numbers associated with the deal.

Purchase price $98,900

Current Mortgage $77,140.  20 year 7% variable locked in for 3 years (2 more), then prime +2% 

Rent $1050

Mortgage Payment $615

Annual taxes $2441

Annual Insurance $1052

Estimated market value is $105,000

Again any suggestions for the best way to proceed would be appreciated.

Thank you!