Creative Financing Opinions

[Cody Thompson]

So I'm working on my first real Estate deal. The seller is someone I've known for a long time and we are going to work out a seller financing option next Saturday. I don't know if anyone has ever done a deal like this so I would like some opinions. So she expressed a starting point 260k. My idea is to sell her on a purchase price of more like 130-150k but with something high like 10% interest. Her main concern is to get around 1200 a month. So my thoughts are to do a low loan amount with a high interest for on what would be a 30 year mortgage but then after 5 years it would go to like a 10 year mortgage with a lower interest rate. So essentially she would still get around 1200 a month for the life of the loan. And I would pay it off in only 15 years. While the first 5 years I would have huge interest write offs. What is everyone's thoughts on this?