Why Oregon Landlords are Finally Saying “I’m Done!” and Selling with Seller Financing.

Why So Many Oregon Landlords Are Thinking About Selling (And Using Seller Financing to Do It)

If you’re an independent landlord in Eugene—or anywhere in Oregon—you’re probably feeling it too. The frustration. The uncertainty. The slow creep of laws and policies that make what used to be a solid, manageable investment feel more like walking a legal tightrope.

Rent control was just the start. The 2019 statewide rent cap seemed manageable at first. But when combined with stricter eviction laws, mandatory relocation assistance, and heavy restrictions on tenant screening, it’s easy to feel like we’re being set up to fail.

Take eviction law changes. Oregon now requires 90-day notices for most no-cause terminations after a year of tenancy, and “no-cause” itself barely exists anymore. If your tenant stops paying, you’re looking at long delays before regaining possession—and courts aren’t landlord-friendly here.

Relocation assistance? That’s another hit. Many of us now have to pay thousands just to terminate certain tenancies legally—even if we’re trying to move back into the property ourselves or sell it. Combine that with limits on screening fees and criteria, and it’s harder than ever to find qualified tenants while protecting your investment.

The bottom line: being a small landlord in Oregon has become legally risky and financially draining.

That’s why many landlords are thinking about selling. But here’s the catch: selling outright means taking a tax hit—especially on properties we’ve owned for years. Capital gains, depreciation recapture… it adds up fast. And if you’re relying on rental income for retirement or supplementing your job, selling outright cuts off that cash flow completely.

This is where seller financing enters the conversation.

Instead of listing with a realtor and selling for cash, many of us are choosing to carry the financing ourselves. That means we sell to a buyer, but instead of a bank loan, they pay us directly—just like a bank would. We collect monthly payments (often at a decent interest rate), stay in control of the note, and avoid the instant tax burden of a lump-sum sale. It’s a way to keep steady monthly income without the headaches of tenants, toilets, or new regulations.

Plus, by structuring the sale as an installment contract, we can often negotiate better sale terms, protect our equity, and avoid re-assessment of property taxes in the short term. For many of us, it’s the first exit strategy that actually makes sense.

In a state that feels increasingly hostile to small landlords, seller financing lets us step back without stepping out completely. We’re not just offloading properties—we’re converting headaches into hands-off income. And in today’s Oregon rental climate, that’s starting to feel like the smartest move we can make.

Real Example: Turning a Rental Headache into Hands-Off Income with Seller Financing

One of our fellow landlords here in Eugene owned a 4-bedroom rental on the west side. She’d held the property for 15 years. Rent control capped her annual increases, the city’s relocation assistance rules meant she’d owe thousands if she tried to remove the long-term tenants, and recent eviction restrictions made her hesitant to even attempt a turnover. The property still had equity—but dealing with tenants, constant repairs, and legal risks wasn’t worth the stress anymore.

Instead of listing the property and taking a tax hit, she structured a seller-financed sale. She sold the home directly to a younger couple looking to buy but struggling to qualify with traditional banks due to self-employment income. The purchase price: $550,000.

Here’s how she structured it:

• Down payment: $55,000 (10%)
• Note terms: 7% interest over 20 years, fully amortizing
• Monthly payment: Roughly $3,800/month
• Balloon payment: None—she wanted stable long-term payments instead

Now, instead of dealing with rent caps and tenant laws, she collects $3,800 every month—higher than her old rent—and holds a recorded note and trust deed secured by the property. If the buyers stop paying, she forecloses like a bank, not an eviction.

Because it’s structured as an installment sale, her capital gains taxes are spread out over the term of the note. She avoids a sudden tax hit and keeps reliable monthly income without landlord responsibilities.

She likes to say she’s “retired from land-lording but not from monthly checks.”

Here’s what her Seller Financing Terms look like:

• Purchase Price: $550,000
• Down Payment: $55,000 (10%)
• Loan Amount (Note Amount): $495,000
• Interest Rate: 7.00% fixed
• Term: 20 years (240 months), fully amortizing
• Monthly Payment: $3,837.41 (principal & interest)
• Payment Due Date: 1st of each month
• Late Fee: 5% of the overdue amount if payment not received within 10 days
• Prepayment Penalty: None (optional)
• Balloon Payment: None (optional—could include if desired)
• Security Instrument: Deed of Trust recorded against the property
• Insurance Requirement: Buyer must maintain property insurance naming Seller as additional insured/loss payee
• Taxes & Insurance: Buyer responsible for direct payment (or require impound account)
• Default Clause: Non-judicial foreclosure in event of non-payment per Oregon law
• Due-on-Sale Clause: Optional—restrict resale without Seller’s consent
• Servicing: Payments collected via escrow servicing company (recommended)

Want to Talk About Your Rental Exit Strategy?

I’m Grace Widdicombe, owner of Grateful Nuts Homes LLC here in Eugene. After 13 years as a local landlord, I understand firsthand how challenging Oregon’s rental laws have become. As a member of the Rental Owners Association of Lane County and founder of the Oregon Real Estate Investors Association, I work with landlords every day who feel stuck and are looking for smart ways to exit without giving up their financial goals.

If you’re curious about how seller financing could work for you, I’d be happy to take a look at your situation and share what’s worked for others.

Call or text me directly at 541-554-4633, or email Grace@GratefulNuts.com for a no-pressure conversation. Whether you’re ready to sell or just exploring options, let’s figure out a strategy that makes sense for you.

Sometimes a conversation with another landlord is all it takes to see a new way forward.