What risks am I missing? Seller Financing

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I own a duplex that I purchased for 69k two years ago. I am a long distance owner and one of the tenants is well behind on rent. I am getting sick of dealing with the property from a distance and would like to try and cash in on the "paper" price appreciation. A local buyer is willing to pay me:

$126,000 Purchase Price

$15,000 Down Payment ($2,000 to be placed in escrow. - $13,000 due on closing)

$111,000 Financing Amount

Terms: Buyer to pay seller $400 a month for 120 months starting 60 days from closing with a payment of $63,000 on the 121st month as payment in full.

A few further points...

-The deal will be contingent on me viewing the buyers credit report.

Questions...

1. Am I missing a major risk other then that the buyer could walk away with the property in bad shape and I would be stuck holding their 15k down payment and a useless note?

2. Do I need to worry about any truth in lending laws?

3. Does this generally sound like a good deal to you? Right now I am breaking even after paying insurance, management etc...

4. Any other questions or red flags that I should be concerned of?

Thanks.

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Hey Joe,

First off sign nothing unless your lawyer says so. Most all deals start of good, like this one does but then can go south. I would have your lawyer write up the contract and let him close the deal. If buyer defaults then you will have to file for foreclosure, Depending on your state it could take a year or more. The cost will be high, If your lucky he may give property back to you in lieu of, And that could come with more cost like water bill, back taxes and any other liens. Also you should have a third party do the credit check. That leaves you out of the emotional equation.

I'm not saying not to do it just understand the risk and decided whether you can stomach them.

Why are you not having a management company handle it for you?

Why are you wanting to hold the note?