Heat and hot water included (no individual meters).

If nothing else, consider rolling it over into an IRA with a low cost provider like Vanguard, and putting it into Index Funds.

Doesn't this risk factor put us in the same boat as a hot market with low interest rates?  

My husband and I are in the process of buying low cost properties for rental units.

The problem with Coverdells is the low yearly contribution limit.

You have to be careful to not go too low on the gallons per minute- saving money on water doesn't make sense if your residents aren't happy with their shower pressure.

Also, you are young but if you look at historical interest rates, they are very low.

At this point I can tap bank loans for much more favorable terms so I should probably hold off on any seller-financing deals until that no longer becomes an option.Overall, the deal seems lose/lose.  12.5% locked in for that long does seem like a low ROI for the seller (especially considering interest rates will likely rise significantly in that time), yet still too high for me for cash flow purposes.

So let me decipher this, if i understand this, you have someone that wants to be an onsite manager but in return he wants some income, low rent on his apartment along with utilities and cable included ?

welcome to BP @JD Thornock , just make sure you do your due diligence here in texas, cause you can get burned here to, not including the summer heat