Offer for Seller Financing

[Jessica Baca]

My husband and I have been approached by some investors wanting to purchase our house by seller financing. I understand the basic concept of seller financing. However, I don't know how to determine if their offer is beneficial to us or if we should counter or just put the house of the market. We do not live in the house but rent it out to close friends. They basically just pay our mortgage for us. If we did put the house on the market, we would probably have to spend about $2,000 to $3,000 to get the house sellable. We could most likely sale our house for about $110k.

Our mortgage balance on the house is $87,900, monthly payments are $662.50 (including escrow).

They are offering:

• Sales Price: $100,150.00
• Down Payment: $3,500.00
• Interest Rate: 6.00%
• Monthly Payment: $679.47 (including escrow)
• Term: 3 years

Buyer will pay for all maintenance costs and repairs. 

Buyer will pay monthly escrow payment to include property taxes, insurance, and PMI.

Total Monthly Payments for 36 months: $679.47 x 36 months = $24,460.76
Balance remaining after 36 months: $92,865.25

Total received: $92,865.25 + $24,460.76 + $3,500 = $120,862.01
Total Interest Earned: $17,076.01

Their offer gives us no cash flow but we aren't receiving any cash flow right now. I am not sure exactly how to weigh this option. I am not even sure if I included all pertinent information. Any advice is appreciated.