Seller financing a small potatoes SFH?

[Ben Skove]

Hi all,

I've nearly finished rehabbing a SFR that I intend to rent. The numbers, rent comps, etc work well on it.

However, just for kicks and giggles, I'm playing around with the idea of selling with seller-financing (this after my realtor urged me to just stick a sign out front after I'm done and see what happens.) Conventional financing would be difficult, as FMV would be around $34K - although there might be some local banks and CUs that would take it on.

My intent isn't to find a sucker and dump the property onto them. While it's obviously a cheap house, the immediate neighborhood is quiet and mostly O/O and attracts lower-income but stable folks.

My initial guess is that the fixed costs involved in order to achieve compliance (licensed mortgage originator/servicer, etc) would be fairly significant compared to the money in the deal?