Buying $48,000 House, Will Owner Finance for 16% Cap Rate

[Account Closed]

I am closing on this house north of downtown San Antonio this week. Purchase price is $48,000 (got a 7k discount), will put $5000 into it for paint and minor repairs. 

Planned exit strategy is to owner finance it to a blue collar family, $5000 down, $895 per month, $80,000~ final price. 

16%~ cap rate when I locate the qualified buyer, and I am not a landlord. 

In other words, life is grand. :)

[Richard C.]

You know what will be awesome?  When some clever housing assistance attorney informs your buyer that since all of the loan origination requirements were not followed to the letter, they can force you to refund every penny!

Life will be pretty grand for them, at that point.  Several years of free rent.