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Updated about 8 years ago,
Seller Financing vs Being a Landlord?????
I have a question about which approach is better and why? Being a landlord with buy & holds vs. offering Seller Financing. I don't use credit to purchase, only purchase with cash. I just started investing in real estate this year, but have purchased 6 properties already, flipped 4 cash sells and just sold my first with seller financing. My original intention was Buy & Flip to build up more cash and than start Buy & Hold as a Landlord. But I am leaning towards doing more seller financing. It seems like a good approach, buying deeply discounted properties for cash that do not need much work, than sell them for full value by offering seller financing. Example: purchase a $100,000 home for $70,000 from a very motivated seller and turn around and sell it for full price of $100,000 by offering seller financing. You're making 30% plus the interest until they pay it off and you're not a landlord. I realize you're losing some tax benefits, but you're also no longer in the landlord business and not responsible for repairs, insurance or property taxes. Am I missing something??????? Thanks for any input.