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Updated over 7 years ago,
What interest rate to charge on sale to tenant?
I have a duplex and one of the tenants is interested in buying it. They've been excellent tenants for several years and both have good jobs. I don't mind becoming the bank if the interest is right - for me that would be 8 to 10 percent.
We have not discussed down or term. Am I thinking too greedy in for a 8 to 10 percent interest rate for 10 years with a balloon? Or is that about right? Any help is appreciated.