Apparently my initial post was a little confusing. 

If that occurs, we report it to credit agencies and initiate collections.

On my initial listing ad, I had nowhere mentioned it was a non-smoking residence.

I would proceed as if you were going to be pleading your case to a judge.

Did the initial contract become unexecutable?

@Joe S.There are ways to syndicate a deal initially wherein the GP lead sponsor can buy all the investors out a few years into the deal generally thru refinance after the business plan is executed and value increased.

Typically, in the deals we do, we are looking for the following:5-year hold6% annual cash-on-cash returns60% profits upon sale Sticking with the previous example, you’d invest $100,000, hold for 5 years, collect $6,000 per year in cash flow distributions paid out monthly (a total of $30,000 over 5 years), and earn $60,000 in profit at the sale.This results in $190,000 at the end of 5 years – $100,000 of your initial investment, and $90,000 in total returns.Almost double your money in just 5 years?

The Initial cost can be a bit staggering for new investors who are just getting started, but can be worth it especially if other investors in your market are not competing online.It's so hard to get a price out of people, you have to fill out all these crazy forms, wait for a consultation, which I understand since we do something similar.

I am not very familiar with the terms and details of a seller financing deals but given the property is not cash flowing, I think it's in my best interest to get at least my initial investment back.

Our friendship initially developed through non-business-related activities, gradually evolving as we discovered our mutual enthusiasm for entrepreneurship.