Seller Financing a Spec Home

[Jimmy Nguyen]

I am thinking of ways to create passive income from new construction.  One option is to build new rentals.  However, I was bouncing around the idea of doing seller financing as the spec home builder/owner.  If my future business has good cash reserves, it could be possible to build a new home with no or little outside financing needed.  Then if we did seller financing, we could use the buyer down payment to payback loans (if any) and then sit back and collect the mortgage payments.  Has anyone done something like this?  What are the pros and cons compared with building new rentals?  I know one advantage is that you wouldn't have to deal with maintenance. 

Thanks in advance for any advice that comes.