How to seller finance mobile homes in mobile home park

[Shawn Rasmussen]

What would be the best way to seller finance mobile homes to current renters in a mobile home park? Let's assume a $1,000 down payment will also be paid on top of the numbers below.

Option 1:

$10,000 @ 12% APR for 48 months

$263/mo

$12,640 paid over 48 months

Option 2:

$12,640 @ 0% APR for 48 months

$263/mo

Either one might sound better depending on the person. Option 2 guarantees the full $12,640 is paid. I suppose option 1 could have an early payoff penalty equal to the remaining interest due. Any thoughts or better options?

The park I'm looking at has 43 park owned homes. Personally, I'd want that number to be 0.

$263/mo