Offering Seller Financing without owning free-and-clear
I would like to get some feedback on the following scenario:
I acquire a property “subject-to†with a retail value of 200,000 for the balance of the existing mortgage which is 160,000 and has a payment of $933 per month.
I turn around and sell that property to a retail buyer for 200,000 with “seller financing†with 5% down at 7% for 30 years.
This would be secured by some sort of note (not sure what type could someone fill in this blank???)
If all goes according to plan (iknowiknowiknow) I will pocket the difference between the payment of the original mortgage payment of $933 and the new payment of $1264 which is approximately $330 per month.
If the person fails to make their payments I would foreclose and start the process over with another 5% down and another 30 years.
I see this as a way to create a steady stream of income without having to deal without being a “landlord�
Is this a viable way of providing seller financing without owning a property free-and-clear? Is there anything I am missing? What problems would I run into here? Are there any ways I can make this more advantageous to myself or any