Would you do this deal? Yeah or Nay and Why?

[Martin Sterling]

I'm a wholesaler. First deal negotiation. (second really but the first doesn't count.) I'm about to put a property under contract in New Jersey. After much negotiation, the seller has agreed to the following. Here's the details:

Fully Occupied duplex in rough neighborhood

Leases in place that are performing.

Current Value: Aprox 130k-140k

Sell price: 110k

repairs needed: 20k-45k

Based on 5 comps (according to myself and mentor): ARV is 150K - 180K

I would say that looks pretty crappy based on the 70% rule and wouldn't even ask about it. BUT, I convinced him to do seller financing. 20k upfront (or even less) 90k due in 18 months. I told him the investor would take ownership during this period, if seller doesn't get his money back in the approved period, it's a deed in leiu scenario. Does this make the deal more attractive? What do you guys think?

My assumption was that the investor outlays less cash therefore has greater return.

Making lemons out of lemonaide.