If you are ready to sell your house yet have the ability to hold onto the house for a few more years, the seller financing or rent-to-own option may be something you should consider.
There are many people who would love to become home owners, yet don’t qualify for a mortgage from an institutional bank. For some landlords, locking in a reliable and responsible tenant to steward the property, a seller finance agreement may be a great way to sell a rental property with a tenant already in place. Read on as we explore five benefits of selling your house via a seller finance in Alabama
Equity as a Benefit to Seller Financing Your House In Alabama
One benefit to selling your house via a seller finance in Alabama is in the equity that will build over the time. When you finally sell the property, appreciation of the real estate market will have benefitted you by providing you more significant gains on the sale. Generally, selling your house in Alabama via a seller financing structure will allow you to put more money in your pocket. It just won’t be put in your pocket as fast as selling it outright. You’ll benefit from collecting payments over an extended period of time instead of in one lump sum.
Cash Flow From Seller Financing
Another benefit to seller financing your home in Alabama, is the steady cash flow that begins immediately. When you seller finance your house, you’ll collect a down payment and then monthly payments for the agreed upon amount of time. Sometimes this can be a year or two, but in some cases the agreements can be up to 20+ years.
Rental Income From Seller Financing
Much like rental income generated from a rental property, seller financing has the potential to give you solid returns on your investment. Similar to how a rental property returns income to the landlord, when you seller finance a property, the monthly rent-to-own payments from the tenant buyer are enough to cover all the owner expenses plus giving the owner additional monies as profit. There are many people who are interested in engaging in owner financing agreements. Sometimes renters you’ve had in place for years, will ask to owner finance the property from you. And then sometimes professional home buying companies like us at North Alabama House Buyer will owner finance from you. Owner financing can create great win-win solutions for folks who engage in the agreements.
Property Management
Another benefit of selling your house via a seller finance in Alabama is that, unlike typical rental properties, there will be minimum repairs and maintenance required for you to do. You can usually sit back, kick back, and just collect the income from the property. The person owner financing the property from you is required to do all the repairs and maintenance on the house.
Seller Financing a Rental Property
Another plus of seller financing is you won’t be paying the monthly mortgage and utilities you would normally be responsible for during the period a house is listed on the market, saving you even more.
Our home buying company is ready to buy your rental property via a seller financing agreement! If you’d like to talk to one of our team members about the benefits of selling your house via seller financing in Alabama, we’ll answer your questions or concerns with no obligation. At North Alabama House Buyer, our aim is to be a trusted resource for you, and we want you to feel good about working with us long after the closing. Call North Alabama House Buyer at (256) 824-9181.