I need advise about a wrap around mortgage

[Nolan M.]

I really need some advise here. I'm brand new and have found my first deal. Its a 4plex, seller is asking 150k and 20% down and offering to carry it at 4% for 30 years which would make my P&I about $575. It seems like a great deal but when he sent me the purchase agreement I found out he still has a mortgage on the property so this will be a wrap around. When I asked him about it he said he has 20 years left on a variable rate mortgage, and his current payment is around $895! I understand a wrap around could be a good exit strategy, but it looks like he'll be out at least $320 every month, it doesn't make sense.  

The seller does not appear to be an experienced RE investor, and when I asked him how I could be guaranteed that he would continue to pay his mortgage he said he wasn't sure. I don't think its any kind of a scam, he said he's just done being an out of state landlord. Obviously my concern is that if life throws him a curve ball and he can't pay his mortgage, I'd be screwed. 

Thank you in advance for your help!