Oklahoma Owner Finance Deal

[Chris Swindell]

I am thinking of purchasing a SFR in Oklahoma for $40,000. The property is owned by my mother and she is willing to owner finance to me with nothing down. The payment would be $425 and another $75 for taxes and insurance. It rents very well at $675 and has had little turn over for the past 8 years.

I was considering owner financing to someone else for $2000 down $700/month for 10 years.  Is the $200 or less per month cash flow worth the potential hassle of foreclosing.  Do you see any pitfalls here?  I am new to the game and would appreciate feedback from people with experience in this kind of deal.  If owner financing is not the right move, would it be worth hassle of renting for $200 per month cash flow?

40K is the market value and I don't see that increasing or decreasing anytime soon.

Thanks for your input!

[Rhett Tullis]

be very careful.  i have a friend that is around 6 months into a foreclosure from a failed lease/purchase and he is still waiting on a date in district court.  this plan can get very expensive and complicated if not carefully done.