In June of 2007, I purchased my first dwelling in Prescott, Arkansas from a friend of mine. She allowed me to pay $1000 down and the rest on a monthly contract for a total purchase price of $9000.
During the last twelve years I have rented out this dwelling (trailer with a large add-on) at least seven times, and have worked to upgrade it structurally on two occasions. I have probably netted at least $20,000 over these twelve years, would have been lots more, but had some problem renters and needs for major repairs.
Anyway my exit plan is to sell it by owner financing to a couple with excellent rent history to me (in one of my apartments). They will be able to have a mother and young nephew join them in this three bedroom, three bath dwelling, with a huge living room. They are so pleased with the deal and should be able to complete the payments (less than their current rent) in a little over 10 years. This house I do not want back, hoping they complete their contract. In fact, they are so pleased they are going to do work for equity on the flooring and painting, buy insurance and pay taxes.
Thanks to Barbara’s suggestion of doing a “Letter of Intent”, this tenant was able to get most of his request from his employer (from his own savings), which he gladly gave me Monday as we signed an agreement and closed the deal. I made sure the couple knows this payment is a Non Refundable Deposit. So they are to pay $27,500 at about 7 percent, and if they do everything they promised, they should have a home with an after repair value of at least $39,000, and I should receive a total over the years of approximately $38,000.
I love it when a plan comes together!!