Fair interest rate for owner financing.

[Ivan Reyes]

Can anyone chime in and give their thoughts on what interest rate you would charge when giving owner financing.

We are going to rehab a 3/1 property that will have an ARV of $60k. We're selling it with owner financing. What would be a reasonable interest rate. Or do you base it on a certain ROI.

I'm thinking 8% but that only yields $440 for a property in good condition, in a good location. As a rental I could get more. Any thoughts?