Evaluate this potential note deal

[William Morgan]

I'm somewhat new to note investing. While I have created notes in the course of buying and selling properties, I have never purchased an existing note. My company has flipped hundreds of homes and structured owner financing, subject to financing as well as managing several rentals so I'm not completely new to the arena. A private lender approached me with a note buying opportunity secured by an SFR. Here are the details - I'd love any feedback:

• Pay History – spotty up until ~2018, but thereafter consistent after obtaining a good job in the medical field. (I've yet to verify)

• The balance remaining on the note at this moment: $156,664.03
• Note Purchase Price $118,000.00
• Monthly Payment amount $2,081.80
• Original Loan Amount was $250,000 and had a balloon. When the balloon arrived it was restructured in 2009 when the principal balance was $202,000. The restructuring included an increase of the interest rate to 7.5% with payments amortized.
• Interest is 7.5% with pay off scheduled to be 1/2029
• The underlying asset is an SFR on a 5000 sf lot with a value of $425,000
• I'm having an attorney look at the note/DOT to make sure the terms are acceptable
• I'll be performing a Title search 

From my perspective, I have great collateral and a great effective interest rate. The borrower has been performing lately. I would not at all be disappointed if I had to foreclose or do a deed-in-lieu of foreclosure. My understanding of risks are 1) any future BK proceedings and 2) the moratorium on foreclosures.

What am I missing?

I'm thinking if I hold the note I have a great return on investment. I should also be able to sell the note for a markup if needed. Are there any pitfalls I'm not already seeing? Would love input from a seasoned Pro(s).

[Chris Seveney]

@William Morgan

What state?

I assume this is owner occupied.

Did the borrower comply with Dodd frank when they originated the loan and when they increased the interest rate?

Is it serviced by 3rd party ?