Seller Finnace as exit strategy

[Don Chambers]

I am thinking about selling my portfolio of 70+ houses with seller financing.  I'd like some advice on what is realistic.

The entire portfolio is worth about $8.5 million. The properties will come with existing tenants. I will not sell to owner occupants - investors only.

I dont want to sell them all to the same person.  I'd like to break them up into a few packages to somewhat diversify the income stream.

I'd need a sizeable down-payment. Mainly because some of the hosues have loans that need to be paid off.

I'm thinking I'd like about 30% down. Is this reasonable?

When i break up the houses, what is a good package size to have a reasonable number of interested buyers? $250k, $500k, $1m, etc.

I may consider interest only payments for a few years. Is this a mistake?

How would you market this? I don't think using a broker is reasonable.  They would want a commission on the sales price and I may never collect all of it.

I'm thinking my terms would be 30% down, 10% rate, and a 30 year term. The monthly payment would be about 55% of gross rent.

Ant tips?

[Matt Devincenzo]

With the info provided, I'm not sure your objective is achievable...

The high DP will be the reason most new investors won't be able to perform. 

The high interest compared to market rate products is why most experienced investor's would likely be uninterested.

Average asset value is ~$120K, so that tells me these are stock that institutional buyers would be less likely to be interested in. 

Not wanting to do OO means your best options on these, local buyers who would buy off market for better loan terms are out.

Based on what you shared, I'd try to find a regional/local investment group or club that might be willing to do a single transaction with no seller finance. I realize that wasn't your question, but your responses indicate that's the best way to achieve your objectives.