Hi Nathan, It's important for buyers to carefully review and understand the terms of any seller financing arrangement before agreeing to the terms.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

I think it's especially important to substitute knowledge of an area with either strict numbers (that will likely keep you out of the game these days) or a solid team on the ground that knows it for you. 

This market is tricky, so having an agent that is active and understands this market is super important.  

You should only proceed with appropriate protection in place, which includes a significant down payment of 10% or more, a solid mortgage, and an attorney prepared to help you with the foreclosure process.I don't see any benefit to your buyers, but if they are willing to pay you 10% for 20 years, then go for it! 

This is why tax planning is so important to help avoid some of these issues before they become issues.

That's why I stress the importance of building a relationship first.

Hello BiggerPockets community,As a first-time homeowner in Florida, I've encountered some unique challenges, including the need to pay for an insurance policy upfront for a year in escrow due to the home's initial condition.

ROI is overall "return on investment" and includes appreciation, paydown, etc.

nice setting, 100% included in new FEMA 100yr flood plain.