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Seller financing seems so logical for my situation - what am I missing?

My situation:

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Currently renting my former primary residence and I'm liking the cashflow, but I'd like to sell. I'd have have $500k in cap gains (bought for $500k, will sell for $1.2m, improvements of $200k) so seller financing sounds good to me, as I retired early and I would like to spread out my cap gains ($0 US income at this time)

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I'd be willing to sell for something like 15-20% down and 5% (fixed, or I guess I'd even be ok with an ARM at current) interest rates for 30 years. My ideal is to have a holding mortgage contract, with both property taxes and insurance added to the payment. The buyer would benefit (immensely) from my $750 per month property taxes, not $1500 with the new home valuation. I could even see doing 10% down with PMI.

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Given that I have rented for 6 years, I'm obviously comfortable with the risk of someone damaging my house or being a deadbeat, as I usually collect one month of security deposit, not $200k (down payment).

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So what am I missing and why would I not be the hottest house in San Francisco at 5% interest rates and property tax savings?

submitted by /u/a11424
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/16pa7q2/seller_financing_seems_so_logical_for_my/
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