re: Profit or Pitfalls of Seller Financed Home Sale

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not really. maybe he is out of fannie mae backed loans if he is a serious investor or it might be credit(more likely) and/or cash. owner financing can be done to be a win-win. the seller/owner needs to dictate terms in contract. if he can foreclose he keeps all money and he can start over again.

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Certainly, but what kind of investor with that many properties is buying a $250k property at full retail value? That doesn't make sense unless there are details missing like its a $400k house he is trying to sell for $250k because it needs something major.

Just because he can foreclose and get the house back, doesn't make it a wise financial move. The buyer would still have to be a viable "tenant".

As for the 5 to 10 year amortization, I'm not saying those terms are odd in and of themselves. But in this situation they are certainly odd. This seems more like a situation in which the buyer can't get a mortgage due to bad credit, not because they are an investor. Therefore, what kind of buyer in that situation is looking to pay it off in 10 years?