GlobalWealth
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In theory, your idea is not too bad. But I don't like the numbers. Would you really feel comfortable loaning out your money to someone who couldn't get his/her own financing at 5% for 30 years?
That's a very low ROI with a very high risk.
I could see doing a 'lease-to-own' situation where you credit some amount of their monthly rent towards their downpayment, ie. $1000 monthly rent and they get $100 towards downpayment.
This would give them a feeling of ownership without you giving up the asset. They could also take some time to come up with the financing.
Another option would be to offer the condo at $200k with 20% down, 5 year balloon mortgage at 8% amortized over 15 years. Less risk, more cash.
That's a very low ROI with a very high risk.
I could see doing a 'lease-to-own' situation where you credit some amount of their monthly rent towards their downpayment, ie. $1000 monthly rent and they get $100 towards downpayment.
This would give them a feeling of ownership without you giving up the asset. They could also take some time to come up with the financing.
Another option would be to offer the condo at $200k with 20% down, 5 year balloon mortgage at 8% amortized over 15 years. Less risk, more cash.