Selling off Rental Portfolio using Land Contracts????

[Jim C.]

Selling off rental properties using Land Contract?

Hello All- I’m thinking about selling some of my rental properties off using Land Contracts. The reason for this is that the tenant pool has declined, as well as to provide a steady stream of income for the next 30 years without having to worry about tenants and toilets!

Let me give you an example:

I purchased a SFR in 2009 for $30k. Today's value is $110k. Currently rented for $850 per month (after expenses, Taxes,Capex,insurance, etc. Net is $475 per month).

If I do seller financing (@$110k), I can get $5000 down and then seller finance the rest at 10% interest, which would result in a payment of $921 NET to me per month for the next 30 years! So, my total after 30 years is $226k in interest + $105k = $331k

As you can see, I would almost double my NET income each month by selling on Land Contract ($475 vs $921).

So…. what does everyone think? Netting $475 per month and dealing with tenants and toilets, or $921 a month for 30 years and not having to worry about tenants and toilets?

Comments???