There is nothing wrong with your strategy. Many people use it and make money. But, I personally don't like it. Here's why: I want to have control over my asset or I want to have my money. In your case the asset is tied up for 40 years. I know it cashflows and that's great, but if you need (or want) the equity out of it you can't get it. Also, if he quits paying you will likely have to go through a foreclosure process which is time consuming, stressful and expensive. I prefer a straight rental agreement. I rent it to the people as long as I want to and as long as they pay rent. If I change my mind and decide to sell it, I can. If they don't pay an eviction is much easier than a foreclosure. If they decide they want to buy it, I can sell it to them if I want to. I have a means of accessing my cash (equity) if I want it or need it. I have sold on L/C before but have only carried the financing relatively short term. Usually two years and then the buyer must refi and pay me off. It worked out. I just don't like having my options taken away and I feel like a long term L/C does that. You might consider a lease with option to purchase if you are looking for other alternatives. Its probably the best of both worlds.