These can also justify higher rental rates.● Competition: What are other properties in your area charging for rent?

I think that idea works better in hotter markets or markets where the work justifies the return (like O.C. or L.A., for example). 

Budget for it (called capital expenditures or capex) and make sure your rent covers it (ideally, the upgrades would justify higher rent anyway). 

You probably don't have enough to justify bringing someone on full time, or even part time in a significant capacity so you might be better off with a property management company. 

Is the rental market strong enough in Michigan, or more specifically Detroit and other large cities, to justify purchasing these cheap homes and just renting them?

The cost to buy-in is getting too steep to justify the rental profits.

You may have usury laws as well, again the MLO. can advise you as to state requirements.As a beginning point, I'd consider 6% to 8% I'd say over 3 to 5 years, but that is also depending on the buyer's ability to pay at that rate.Basically, doing seller financing you need to justify the terms and conditions of the contract and ensure that you are not seen as taking advantage of an owner occupant.

However, I am the guest contact so I am planning on letting them go because for what they do it doesn’t justify 10%.

Fees should be clearly stated in writing, easy to understand, and justifiable.

Fees should be clearly stated in writing, easy to understand, and justifiable.