Land Contract Good - bad - and ugly

[Duane A. Snow]

Hi all. I am looking at buying my first rental property on land contract. They have had the property listed for 4 months and had 3 price changes. They bought the property 13 month ago at $165,000, to rehab and try to be landlords but it is not for them. So, after new windows throughout ($15K). paint, quartz counter tops on the old 1970s cabinets, redone hard wood floors on the first floor and will replace the roof in the spring. I am thinking $200K into it. They listed for $310K, then $290K, and now $269,900. We are thinking $230K on land contract (they offered owning financing) 15 yr, 5.5%. They end up with $325K long run. 

The renters they have in the home want to stay but it can go for $2600/mo and they let them do $1600 because they went by what they thought they needed and not how much they could get. These renters need to go and can at a month to month now. They have way to much stuff, things all over the land that make the outside look terrible, and they have hundreds of plants inside that has made it hard to look at the property to most, needs a huge cleaning, and the garage that could fit 8 boats for storage units with the rest of their things floor to ceiling. 

Just looking to see if we are asking about the right price with our ideas. Also advantages and disadvantages to land contracts? thanks for your time. 

Andy