Help with structuring a contract for deed, lease option or other

[Andy Zich]

I purchased a duplex to house hack and I've listed my current house FSBO at $219,000 with 3% commission for buyer agents. I've received a full asking offer from a represented buyer however the buyer is not able to procure a traditional loan yet as they have moved here from abroad. I've done some verification and I will certainly do my due diligence to verify the buyer but for the purposes of this post, I'd like to focus on the deal structure. I wanted to do a rent scenario until the buyer is able to procure a loan however they are not interested in this arrangement and the agent suggested a contract for deed structure. Before I give the numbers I want to mention that my goal has been to sell the house to gain access to the equity to invest in more buy and hold properties while also reducing my expenses by house hacking the duplex. That said, if I'm not selling the house to get the cash out then I would like to at least maintain access to the equity in the form of a HELOC.

The numbers:

• I owe $103,563 on the house giving me approximately $115k in equity. (current loan is a 15 yr 3.375% fixed)  
• My current PITI is $1774
• Buyer would pay me 20% down $219,000 x 20% = $43,800
  
• Buyer would pay me $836.43 ($175,200 @ 4% amortized over 30 years) with a 3-year balloon payment. 
• Buyer also would pay me $563 in property tax, insurance plus a small stormwater assessment fee for a total of $1400

Based on my 15yr loan amortization schedule I will pay the bank $8,608 in interest over the next 3 years. During this same time I will receive $20,473 in interest from the buyer for a net gain of $11,865. Now if I were to sell the house outright for $219000, pay the agent $6500 (3%) and then pay off my current loan balance of $103563 then I would be left with $108,867. If I turned around and bought 5 $100k investment properties with 20% down and each cash flowed $200 then my opportunity cost of not selling is $36,000 cash flow in 3 years which is a 12% cash on cash return not including debt pay down. The way I see this is that my net return from the contract for deed scenario of $11,865 does not produce a good return on equity of $11,865/$108,867 which is 3.6% annually. If I'm thinking about this all correctly then this is not a good deal. I'd actually be better off rejecting the full price offer, lowering the price by $10,000 to find a new traditional buyer because recovering less equity still would get me 4 instead of 5 investment properties and I could recover the lost $10k in one year making year 2 and 3 far more profitable. 

I know there are 100 more ways to structure this owner finance/contract for deed in a way that makes the numbers work better and I am open to any an all ideas! Please help!

Regards,