If the note is a 20 year term and the underlying  note the same, you’ve got $100k invested with an annual return of about 22%.  

My short term goal is to buy our first property to turn into a rental by the end of the year.

We just moved out and are renting it long term and making around $400/month.

The remaining 25% of the gross rent will be absorbed by vacancy losses and ongoing maintenance expenses.When using a lease agreement, the lease agreement amount must be supported byForm 1007 or Form 1025, as applicable, orevidence the terms of the lease have gone into effect.

Depending on the state of those facilities it could make sense to secure a renter before renovating so that you build the area out for the long term renter. 

Does anyone here run profitable rentals (long term or short term) and would be willing to share some good locations / strategies on getting started? 

Thanks, Gary Neely Gary, Just use you standard state contract and write out the terms of your seller financing in an addendum or on the OTP itself if there's lines for additional provisions.Be clear and concise.Example,Seller will carry a promissory note secured by a 1st position mortgage in the amount $97,583.00, at 6% interest, amortized over 30 years, witha a maturity date and balloon payment due 10 years after the closing date.Hope this helps and certainly get an attorney involved if you are not comfortable drafting the language.  

It may seem counter intuitive, but the basics of real estate mentioned above are actually MUCH more important for long term success than the knowledge of any one technique or strategy. 

I view my primary as my long-term home, 3 young kids with a good school system, so this is where we are settled.

Guessing the potential long term construction of a new road and housing development with no time line is scaring people away.