Holding mortgage on rental properties?

[Donald Butler]

Hello all, 

First post! I have 5 SFH rentals in Long Island, New York. They produce great income because they are mortgage free.

 As I approach retirement age I’m debating on whether or not it is worth selling one or all of these properties  and holding the mortgage on them as well.  

Purchased the homes for approximately $25,000, 20 years ago. I can sell them now for approximately 200,000.

 I am considering selling one and holding the mortgage.   $30,000 down payment, 6% for 30 years at $200,000 sale price.

 The rentals earn approximately $12,000 profit each per year.  

Am I crazy  for considering this? 

 There is a large influx of Spanish immigrants moving into the neighborhood, so I can feel I can charge  A higher interest rate for someone with poor or no credit.

 The $30,000 down payment  Will be utilized in case they default on loan.