I have a paid off rental that has bee rented for 20 years without a missed payment. However, I am two months from retirement, plan to travel significantly, and do not want to leave the burden of land lording on the DW. Plus, I plan on taking the proceeds and paying off my home mortgage so I can be debt free.
I have a buyer who would be willing to do this (my current tenant) and can pay a 20% down payment and pretty significant monthly payments (I get $1,350 for rent, but he can pay about $1,500.
What interest rate do you charge?
How long a loan usually (before the ballon payment)?
They pay taxes and insurance, correct? Or do I pay insurance to ensure that if it burned down (for example) that I'd have my asset covered?
These are a few questions for now, but I'll likely generate a few more.
Thanks!