If they’re late a third time, you have a strong case for eviction for habitual non-payment—without risking the tenant showing up at the 11th hour with the money.For your specific circumstances, with only a partial month behind, I would guess there is a decent chance they can come even on rent and it would be a waste of your time.

I know your involved at a high level with Board of Realtors and state regulators .. 

I understand the risk it comes with if I have vacancies, but I do have a couples of months of mortgage saved to use in case I get stiffed.

There’s nothing special about the seller financing terms here IMO, unless you can’t get a conventional loan of course but if that’s the case the balloon payments create a high risk for you and you shouldn’t do it anyway.

With your additional $100,000, you’d have a nice cushion to renovate or furnish a property like that.It really comes down to how involved you want to be and your long-term goals.

@Allen Masry you stated you want to invest passively, so real estate is out, except for REITs, which are part of the stock market.You might be tempted to invest in a syndication, but those are high risk and you really need to research and then monitor them.

Additionally, add in the ambiguity/risk of the due on sale clause or ramifications on the conventional loan of transferring the property from your individual name to an LLC - the economics don't make sense, and the headache isn't worth it even if it did, in my opinion!

What is the loan to value - this is for risk and secure the real estate to make sure its not unsecured.2.

Your plan to house hack a multifamily property in Indianapolis is a great strategy to start building equity and learning the ropes with manageable risk.

Yet, too many of those posting advice for you have no clue on the risks they are advising you to take.You're pinching pennies to save $8k with 3 kids. - What would happen if you lost it all?