How's this Tenant-Buyer Deal sound?

[Joe Roberts]

I contacted an investor who had listed his property on Zillow and this is what he responded with. I have never dealt with a tenant-buyer acquisition before and don't know exactly how to go about analyzing whether or not this is a very good deal. Any help would be greatly appreciated!

"1. I have legal title, free and clear of any mortgage debt. Property taxes are current.

2. Property is occupied by a tenant-buyer

3. Tenant-buyer contracted with me in 2018 under a land contract to purchase the property, with PITI payments through 2023, culminating with a balloon payment of approx. 89k in March 2023. In total, remaining payments between now and then (PI payments) due to the title holder, per the contract, total approx $114,500. Tenant-buyer is responsible for all maintenance and they forfeit their land contract if go into default and if they do not cure before being evicted.
4. The tenant-buyer is employed and is a nice enough person, but gets behind occasionally. On the two occasions since 2018 that she has been more than two months' behind, she has caught up. Most recently, she made a payment of $760 on February 14th.

Hopefully that all makes sense.
Now that have those numbers on the board, the reason I'm even considering discounting an otherwise locked $114k stream of payments is because I don't want to have to continue playing landlord every month. I'd rather discount my position (within reason) to and transfer title to another investor who can either collect payments and keep the profit, or (if tenant-buyer defaults) the new title holder can evict and do whatever they want as title holder (sell as-is, renovate and sell retail, lease out at $1200+ a month, whatever).
I'd sell for all $89,850 cash or for $15k minimum down payment, I could accept a seller-held 1st position deed of trust for the balance (negotiable terms - shorter term for lower interest rate; longer term for higher interest rate). In either case, you see the inherent profit margin versus the $114,500 in payments remaining from the tenant buyer.

The original land contract was a $99850 sale, $5000 down with the balance serviced at 7.125%. She has paid the current contract balance down to 94k. PI payments are 639.02. She's got a balloon payment due March 2023 of roughly 89k. In the meantime our land contract holds for her being responsible for taxes and insurance expenses ( she pays monthly a 1/12 amount of annual property tax and insurance, which of course I apply, similar to how a bank escrows for taxes and insurance) .
Given that she's less than one-payment in default, the risk of total default is fairly low. She's already made $25k in PITI payments since we originated the contract in 2018...so clearly she has skin in the game and incentive to honor the contract through maturity. Otherwise, if she defaults and has her contract forfeited, she's leaving a lot of money and equity on the table. And whereas her PITI payments are $752.21, FMV rent in the neighborhood for a comparable home is easily $1100 or $1200. Again, more incentive for her to stay current from her point of view."