How would you structure this deal?

[Pyrrha Rivers]

Hello BP,

I am trying to put together a deal using some of the structures and thought processes I’ve seen you smart people use, but since it’s my first time trying it, I'm not sure if I'm thinking it through and correctly. Here it is for your review and helpful advise.

Seller has been unemployed for some time, needs money to keep things afloat and has investment home he is motivated to sell.

3/2.5 townhome in quiet neighborhood potential rent range $800 - $850.

Yearly taxes are $1160 and insurance may be approximately $700 per year.

Seller offers to sell for remaining balance on the loan $43K.

According to seller, the home needs about 750 sq. ft. of floor coverings in second level, 1 bedroom door and 1 sink vanity.

I asked the seller if he would consider owner financing and he is open to that but would like to finance for a short term (3 years max) and have me get a loan to pay him out of the deal. 

I would like to pay $50K so I can get a conventional loan to begin with, have the seller pay closing and repair costs amounting $7K. This way seller gets all his money and I get the property for $10K down payment and have a mortgage of $33K to be paid by my tenant.

Is this sound thinking? 

How would you do it?

Thanks for your help!

Pyrrha