Seller just wants to finance.

[Jason Patterson]

Ok about to make a offer on a very clean rental house that has been rented for 25 years by same renters. Owner doesn't want to sell out right because they don't want to show a big capital gain. They are interested in seller financing though.

Our offer is going to be 90k with 15% down @ 4% interest. In need of small repairs around 5 to 7k homes sold in the area range from 135k to 150k same year, sq/ft, 3/2, two car garages, rural neighbor. Comps are on same street with in 3 months. We are going to rent it out for 1,400 a mth time being. Cash flow looks good all numbers come out great.

My question is what happens if someone wants to buy it from us?
Do we make a contract up saying no penalty for early pay off?
How does this effect the purpose of seller financing for the seller if we where able to sell it for a larger profit?
So in the end seller would still get a large capital gain when we sold it to pay them off.

If we are 100k into the house and can sell it for 145k You Bet Its SOLD!
I just don't know how seller financing works on such terms like this.

Any help would be appreciated.