Just inherited 485k house, considering offering seller financing

[Mike Schoonover]

Hello, I recently inherited a home in Solano county, the home is paid off and was owner occupied since built and was well taken care of with multiple upgrades over the years. 

I initially intended to rent the property but i would only net $1,800 a month in doing so. This feels like a light return on a 485k asset, and my thinking migrated towards selling the property and moving the money out of state and purchasing other rental properties.

During my deep dive into self taught real estate investing i came across the idea of creative financing, and started running numbers on my monthly cashflow if I carried the note, with current interest rates, with favorable interest terms to me in exchange for a low down and relaxed qualifying factors, and the hypothetical cashflow doubled.

My question is, is this doable for a first time home seller? I would want to bypass realtors so i would need to learn that side, along with the need to learn how to draft a note with terms and navigate all the other legal pitfalls that could sink my idea. Im not against paying professionals to take care of the needed steps im not qualified for but i dont know where to look, nor do i know everything i need to look for. 

Watching Pace do deals makes it look effortless on the seller financing side, but hes done enough deals that its all muscle memory. Am I insane for trying to be the bank on my first home sale? Ive been looking for resources but it feels like i get 2 new questions with each answer i find.

[James Hamling]

@Mike Schoonover you are way WAY over thinking this, and forgetting; pigs get fat while hogs get slaughtered. 

You inherited this property, not purchased it, your $1,800mnth rents is 100% ROI because your outlay into this performing asset is what, legal fee's? So less then $10K. Is $10k outlay for $1,800mnth a good investment? Your getting way off in the weeds focusing on that $485k.

This is simple, keep it simple. 

Your knowledge base is obviously extremely limited, so you MUST keep strategy equally as limited and simplistic or your gonna incur education via pain. 

Keeping it simple you do a standard rental. And being of no experience in the real world you use a professional to defend against risk exposure (PM) and learn from them. You then get a HELOC, to open up use of that equity position.

And then, with all that done, now your ready to start putting together team and fielding deal potentials that work, and have that HELOC to facilitate the acquisition.

Then, lastly, with some experience under the belt, some other properties acquired and operating, NOW it's a choice on this originating property of do you keep it and let it keep chugging along OR is it time to sell, and 1031 the remainder of equity into other deals. 

Pace has done how many hundreds of deals before any you have seen? Yeah, Pace kept it simple at start, very simple. Do yourself a favor and also keep it simple, you have a great opportunity to get in and gain experience in a very safe simple setting, don't screw it up by getting greedy and over-complicating things.