If/When the sale goes through, have you thought about setting up an annuity for Bob rather than just giving all of the money over to him at once?

It's not just a present value assessment of an annuity income.I appraised notes and RE contracts for the State of Missouri as a broker.

Revenue StreamI am frequently asked by new investors, "Why real estate is better than dividend stocks, CDs, annuities, etc. for achieving financial freedom?"

Specifically gross income means all income from whatever source derived, including (but not limited to) the following items: (look at 2,3,and 5)(1) Compensation for services, including fees, commissions, fringe benefits, and similar items;(2) Gross income derived from business;(3) Gains derived from dealings in property;(4) Interest;(5) Rents;(6) Royalties;(7) Dividends;(8) Alimony and separate maintenance payments;(9) Annuities;(10) Income from life insurance and endowment contracts;(11) Pensions;(12) Income from discharge of indebtedness;(13) Distributive share of partnership gross income;(14) Income in respect of a decedent; and(15) Income from an interest in an estate or trustI am not a lawyer (would not admit it if i were) but I did sleep at a Holiday Inn last night.

The expected rents over the loan term aren't simply considered as a stable annuity income, but a series of uneven cash flows considering expected market influences, vacancy, lease up periods, inventory of similar buildings, flexibility of use, functionality and population trends and many other aspects.

Except that buying an old contract for deed is nothing like buying a note, except from the annuity stand point.

Now, more advanced thought, you can sell a lease and an option, the option isn't going to have much if any value in residential without extensive underwriting, but the lease can be assigned easily for a purchase, it's similar to a loan with a lease` assigned, but if the tenant fails there is less recourse but they do have rights to future leases over an agreed payment period, you're selling the annuity income much like a note or partial note sale. :) 

Of course, if you can apply their suggestions in the future it could be a good investment.Also, your local banker, insurance broker, and even the guy trying to sell you an annuity likely aren't looking out for your best interest, so find a financial advisor who isn't paid commissions on selling products you don't need and gets paid for performance.

I have three hundred dollars a month, no banks, put a long-term renter in there, no Dodd Frank because I'm not living in itThe way to sell this to the 60 to 70 year-old couple is, if I can give you not 100% but 105% of value, Think of this payment that I give you as an annuity stream, because if you got all cash today you probably have to save it and live off the interest or live off payment if you bought an annuity, right?

That is a nice little annuity.