However, you must make sure you give him proper notice of lease change according to your local laws.

We do have a lawyer lined up who should be able to take care of that aspect, so that's good to know.In terms of the structure you proposed, I just have a couple follow up questions to make sure I understand properly:1) If the investor pays us $50,000, we would offer to pay him a preferred return of $3,000 per year from the monthly income we receive?

There are some minor solar equipment differences, specifically with the inverter, if you intend to add batteries now or laterIf a solar system is properly engineered, snow is a non-issue.

Comparing these terms to the best financing I've found through a bank ($320k loan, 5.5% fixed for 10 years then refinance, amortized over 25), with same purchase price and down payment, results in a lower monthly payment by $315/mo, plus my principal balance after 10 years of payments through bank financing would be $240,000, compared to the $180,000 balloon that the seller wants at year 10. 

Comparing these terms to the best financing I've found through a bank ($320k loan, 5.5% fixed for 10 years then refinance, amortized over 25), with same purchase price and down payment, results in a lower monthly payment by $315/mo, plus my principal balance after 10 years of payments through bank financing would be $240,000, compared to the $180,000 balloon that the seller wants at year 10.

Aaron is correct about investing in other areas that are local that are outside of Port Arthur proper.

I'm not sure on 1) how to structure the lending part. the 3-5 yr part for the balance 2) what terms should I set for monthly payments 3) I'm in NY which is a judicial state do I have to use a lawyer 4) what are the risks for the property owner and myself 5) when and from who do I get my assignment fee6) If they have that much cash why not just get a loanThank you in advance for the advice !!!

@Ellie Narie all the posts above are correct and your title company that you use to close on the property can help file the lien properly for you. 

.-$135k remains:---$67,500 (half of balance) due December 2019.---$67,500 (half of balance) due December 2020.-$0 in between. 

Just make sure you screen your tenants properly before hand.