Owner Financing - Benefits/Pitfalls??

[Conrad Z.]

I'm considering owner financing on a house I purchased at the trustee sale in Phoenix for 60K

Using a sales price of $100,000 with $20,000 Down and an interest rate of 10%. I should get roughly $12,500 back after closing costs. So I really have only $47,500 of my money in the property. $60,000-$12,500=$47,500
I have now created a debt owed to me of $80,000.
When they refinance in 3 years I will make an additional $32,500. They may refi that much sooner but I am being conservative. Meanwhile my $47,500 that I have invested is making an interest rate of 16.84%. We get the higher return because I'm getting paid 10% on the whole $80,000. Total payments for the 3 years are $24,000, if I do interest only.

Does this look correct. Benefits/Pitfalls??