The occupied units were rented for $1k/each and bought at a purchase price of $62 K/ each.

@John DeanIf it’s going to be owner occupied then you should use a loan servicer as its required by law in most states and for every incorrect statement you send every month you are committing CFPB violations and if the borrower defaults you are technically not allowed to collect interest - in some states if they have a good attorney and default they could wipe you out in legal fees…My bigger question is why would you seller finance?

If you live in the property there are some great owner-occupy loans available, like FHA or low money down conventional loans.

If they are not on the lease, they are trespassing and illegally occupying your unit.

Quote from @Sateesh Kumar: Hello,A relocation to CA bay area seems imminent due to job and therefore selling an owner occupied triplex also seems imminent.

He has owned this property since 1999 and still owes money on the mortgage and we are interested in learning of a way to benefit the both of us instead of me using an owner occupied loan. 

This is a great option, but you are still limiting yourself to investors who want to buy an already occupied home.

I can think of buyer-type: flipper, owner-occupied, STR, Buy-and-Hold LTR, rehabber, wholesaler. 

Now in you had a loan at 80% LTV (typical max leverage on non owner occupied SFR) then you only had invested $20k.  

.- Peace of Mind: Knowing that your property is occupied by trustworthy tenants who have undergone rigorous screening provides peace of mind.