@Alex Hostetler Did your contract state that the unit would remain vacant upon sale?

The need for high quality land to meet the global demand for food now and into the future, will remain high.

I have been reading quite a few posts and have been listening to BP podcasts (which i love)  Currently the market in my immediate area is VERY inflated and unaffordable for a new investor. 

Problem is someone is living in the other house and his family who owns the house now has asked if he can remain there, paying me $400 per month until I'm ready to begin work on the house.

He anticipates hyper inflation. 

I realize some of my funds will have to remain in the stock market (my current employer's 401k for example). 

So dividend income will remain dividend.

So we talked and I made him an offer...My offer was 42k(his sale price) for a 5yr land contract and a balloon for the remaining balance in month 60(3k) He said he needed $650 a month and before his mother moved in rent was $750.He countered with 48k and a balloon of 9k at month 60 (comps in area 50-60k)The property is in good condition (2bed 1bath attached garage)My exits would be sell in year 4 and cash every one outSmall refi in year 3-4Pay the 9k and keep as a rental.Keep in mind there is no money of mine in this deal other that closing cost with my Attorney.If his bank calls the mortgage Due I'll sell or refi myselfSo is the extra 6k he is asking for worth it?

With an option to buy the remaining payments after 24 months of seasoning.

In other words, if there was a foreclosure and the property sold for less than the total of all the outstanding liens, first the 1st lien would be paid in full, then any leftover funds would go, in order, to the remaining liens.