Purchase price: $145,000 Cash invested: $50,000Good solid home, needed a bit of work, added 1 bathroom & mud roomWhat made you interested in investing in this type of deal?

(Verbal agreements don't carry a lot of weight with real estate, so you'd likely prevail either way, but do you want the tenant's free "tenant's rights lawyer" to drag you through the mud for months, or weeks?)

I've shaken a few undesirables out of the tree that way before I made a mistake with accepting them. 

The machine sprays drywall mud on the wall.  

Now you have the visceral experience of signing your name on the bottom line and being responsible for this large asset.You also had your first experience with an undesirable tenant. 

Go Mud Hens!

I also have an interior wall crew, sheetrock, mud, tape and paint company that I have used for 12 years. 

The warranties are good to have when you find those mud trails.

In regards to Houston area, Nice neighbourhoods with new mud (municipal utility district) run on average 3 to 3.5%.

You need to be more specific as to "seller financing" I agree with J Beard, it's as clear as mud. "5 year Contract expired" then "Tenant", then "foreclosure" then "note terms", what did you do?