I would be interested in learning more about the profitability and pitfalls.

I know there are some pitfalls with this approach.  

To me, that’s just a pitfall at auction to avoid.

What  pitfalls should i avoid in a seller finance situation? 

The tenant pays the property tax bill, insurance, repairs, short and long term deferred maintenance on all building systems directly -- you collect a rent check and stash some of the proceeds in a capital reserve -You can still get good deals in the 6-7 cap range in strong MSAs with healthy population and job growth rates -Attractive financing available -- you can still get 7-year fixed money around 4.25%, 25-30 year am, and 10-year money at 4.5%, 25-30, for good quality deals Pitfalls to look out for:-Avoid franchisee deals like the plague -Ensure that the guaranty language is rock solid and that the parent company's balance sheet and operating history is strong -Ensure that your lender will accept a very high property insurance deductible -- many of these big national companies are effectively self-insured in this regard -Avoid deals in which the tenant is paying an above market rental rate that's out of line with competing retail space in the immediate vicinity -Try to focus on "daily needs" tenants that sell perishable goods which will make them less susceptible to "the Amazon effect," at least in the short term.

Any other pitfalls I should watch out for?

What are the pitfalls that others can avoid?

I'm constantly trying to teach my nieces and nephews about being financially responsible, and here in front of me are 4 people that might be trying to do just that.I realize the pitfalls here, 4 people would have to be named on the lease.

Jim is just trying to point out that there are many pitfalls that many newbies blissfully ignore....You will have deals that lose money and that break your heart.

Judicial sales (aka free-and-clear sales) can divest other interests, but there are many pitfalls due to the stringent notice requirements that the taxing bodies must comply with.