Owner financing question

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I'm sure someone here has done this. I have an Idea of how it works. I would like to hear from someone who currently has Owner financing on a property.

This is how I believe it works. I buy a property for 100,000. [EX]
Lets assume Its worth 150,000.

I have a mortgage for 100,000 lets say at 6% for 30 years.

I then sell it for 150,000 and finance it to someone with less than desirable credit, lol. :roll:

I charge them what a bank would for this credit problem say 9 % just for kicks.

I then make a 42,500 profit immediately and request a 5 % down{7,500} from the buyer. I would pay my mortgage and keep a 3 % from the mortgae after I pay the original mortgage leaving me cash flow monthly for any future problems with tenant along with the 5 % down I mentioned above, to cover legal fees should they default. If they default I would go through foreclosure process like a bank would.

I'm assuming that if they default I can resell the property again and start all over after the legal process is done. It seems all to easy. :wink:

Because I really don't know how exactly it works I'd like those of you with experience to blow up my Idea. Show me where I'm wrong and point me in the right direction please. My numbers are all obviously hypothetical if this is truly a good avenue for cash flow with risk obviously I'd like to know what can go wrong.

I have a great source for these types of properties and I'd like to take advantage of this if this is a good Idea.

Any info would be greatly appreciated. Thanks :D