Seller Financing Exit Strategy Question

[Michael A Quinones]

I have a potential seller that keeps failing to get rid of his property after not coming an agreement with me (or anyone else apparently) and is now reaching out again for a 3rd time. I am holding firm on my numbers and I don't think he will go for a wholesale price where the numbers make sense for the both of us on a cash purchase so I've settled on going with seller financing. Where I am stuck is the exit strategy, and if I am missing something with my numbers. Initial thought is purchase @250k with 5% down/4.5 int. rate and either pay the difference of taxes, insurance and HOA or get moved into my own name. Then do a 30k rehab, put a lease option tenant in with 350k purchase/5% option consideration and either 1- cash out refi like a BRRR or 2- wait until the term is done and balloon payment the original seller if tenant buys/receive another option consideration if tenant leaves or renews while maintaining high cash flow.

With 1: I would lose some cash flow but would maybe 70k cash out that I could use for next property(s)

With 2: I would keep high cash flow and would sell + 1031 into next property(s)

With multiple strategies to consider on my first property and having only done a bit of research on lease options, I am positive that there is something I am leaving out. Can you even refi with lease sandwiched in seller financing? Any information on these strategies and specifics would help. Even if what I am doing won't work, it would be great to learn what I can and can't do. Thanks in advance. I can attach more specific numbers breakdown if it will help to see projected profits.