Holding the paper on my property

[Joseph Quarto]

Hello all,

I have a 5 unit property.  A good long term tenant has approached us about selling.  They are successful business people, young enough to know the value of long term property hold, (especially here in Seattle market).

 We are thinking about Holding the Paper.  We are retired, comfortable, make good rental income on the property, Building almost paid off, but getting tired of doing the minor maintenance & management (used to work for Property Mnge. firm, don't want that). Also want to travel with no daily worries.  Don't THINK I want the hassle of 1031 exchange with more properties  Just want the monthly income for now, (which I figure would be close to what we make now minus upkeep) . Sale would be in low 7 figures.

Are there any thoughts on this?

1) what should the rate be?

2) the DP?

3) term length & any balloons

4) do we need anything special written up other than whats thru Escrow company

5) Was thinking that Taxes & Insurance would be put into set Escrow company account to assure they are paid.

6) Is it hard to get building back if things don't work out?

anything else I should consider? 

I am thinking with NO bank we can pretty much write up anything that works for both parties

Thanks much, love this site with all the info from such smart people.

Joseph Q