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Updated over 7 years ago,

User Stats

9
Posts
2
Votes
Rich Thomas
  • Investor
  • Gig Harbor, WA
2
Votes |
9
Posts

What interest rate to charge on sale to tenant?

Rich Thomas
  • Investor
  • Gig Harbor, WA
Posted

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.

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