There is no way to know if the interested people would have applied, been accepted, or decided to move in mid-month.

I’m not exactly sure who would have been liable, etc if we accepted it as a bonus., but we immediately paid off the first lien. 

While there are some rather light legal and tax aspects, buying or selling a note is not rocket science.The hard part is selecting the right note and obtaining the right or an acceptable price.

Standards have to be a bit stricter, not saying higher, but stricter.Another guideline is every April & October, everything is paid with cash and if cash is not accepted--debit card-- it really makes you look at how you spend.

As soon as the offer was accepted, we set up an LLC and transferred the contract over to the LLC, of which I am the sole member.

Property owned before marriage, or acquired by gift or inheritance, is considered separate property and belongs exclusively to the spouse who acquired it.WORD TO THE WISE ----- Keep separate property separate and DO NOT COMINGLE them, if you live in CALIFORNIA or any other community property state - which I believe are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin!

You market your property like you would any other rental—put it up on Zillow or AffordableHousing.com, and make sure to note that you accept Section 8 tenants.

Being novices in the game we do not have the legal or business background to know where to begin on accepting funds.

Also, never accept responsibility.

Convert the Property to a Primary Residence: If you live in the property for at least two of the five years before selling, you may qualify for the primary residence exclusion, which allows you to exclude up to $250,000 of capital gains ($500,000 for married couples) from taxation.4.