Other than the additional transaction costs, I would think it's a solid play overall for higher risk deals.Very interesting discussion. from my knowledge and then advice.. if the borrower signs the dil at closing they have already transfered it back.. it does not need to be recorded to be valid its valid the date its signed so there is that..

One time I had a guest smoke and it went right up the ducts into my unit, it was awful.I'm conscious about how that could potentially affect guests who will be staying in the upper unit in the future.

The more rentals you have the more risk there is to having a bad situation crop up.

If you move to NYC, focus on maximizing your earning potential while investing in affordable out-of-state markets with strong rental demand, like San Antonio or Indianapolis.

How much risk are you willing to take?

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.

@Kyle Cross, correct me if I'm wrong, but I think maybe what you're getting at is potentially pitching to your parents that you would like to take a shot at personally managing the units to gain experience and some form of compensation.

With the current mortgage rate constraints affecting how many buyers are willing to enter the market we are seeing a lot of borrowers have success with the BRRRR strategy with plans to sell in the next 3-5 years when interest rates go down.Researching potential LTR and STR rental amounts and seeing if holding for a few years is a viable option is a good analysis to do well. 

Since this is my first project, I’m very open to any advice or suggestions—especially regarding potential obstacles I might not have considered.

There are definitely risks that will be completely outside of the auction house.