The shorter the prepayment term has an impact on increasing the rate.4.

Do you know how to determine reno cost?

I give the warning because these tenants live in a little bubble and aren't considering the costs and inconvenience of moving.

You will need 20% or even 25% down plus all loan and closing costs to make the loan happen.

You don't have a lot of equity in it after you factor in closing costs and realtor's fees. 

Know the costs for fixing up the property and explore ways to pay, like bank loans, FHA loans, and local aid.

consider the opportunity cost of doing this#1) sell house for cash or to a buyer with their own financing from a bank, etc and you get 315K at time zero, you invest that at historic SP500 8.4% return over last 220 yrs and it grows to $3,541,514.46#2) do owner financing and you get 100k up front that invested at 8.4% grows to $1,250,000, plus you get your payments at $1400 x 360 months or $502k, invested grows to $3,265,000 total including the 1.25 mil aboveso you come out 300k better not doing it and you don't have to service the loan and all the other risksremember banks don't even carry mortgage notes after origination, they dump them onto the US taxpayer via illegal-unconstitutional havens like Fannie/Freddie/HUD, and for last 15 yrs the FED has bought every MBS in the country, which frees up the Banks capital to do it again and make the real money on churning the points and feesplus will next 30 yrs have higher inflation than last 30 yrs?

Are they taking a cut of the increase in sales price or are they just marking up their renovation services and charging for those?

I originally think that Florida's insurance is off control, then I found the NC properties' insurance increased 40% from last year and tax will increase also.With current inflation(3%, 30%, or 300%), more and more people can't keep a home in most place although the interests maybe under 4%. 

It may end up costing you more than you hope to save.If you want to finish the basement, hire a contractor for the job and pay them.