I was thinking about owner financing a property to a buyer and I need some help to figure out if this is a good deal or not.I paid $235,000 for the home.

If I was in your shoes I would gently let that person know what you plan on doing with the place and how much you're going to be charging etc...

If all looks good, I suggest a one-year loan with one automatic one-year extension for another 2 points, subject to on-time payments, taxes & insurance paid, etc.

Same thing with your HELOC, if it's a $0 payment, it's a $0 impact.Not discouraging the purchase by any means, but food for thought: "There's no free lunch" if you're getting a below market rate from the builder that's getting paid for in the purchase price.

When she finally paid, it was $150 short.

Personal preference though 

I guess I wouldn’t be against it if it was cheap (less than 1-2% of rent) and the tenant paid it.

This answer all depends on personal preference and budget.

Some want it paid to you, some want it paid to them, some to constable, some to sheriff, some to the law firm, some to the appraisal district.Payment normally due same day...so nearly impossible to get loans for these.

They can explain what the requirements are and verify if this person holds the proper license.Anyone can get a license.