Seller financing and profit split question

[Steven Cosner]

Hello everyone,

I am BRAND NEW to the real estate investing arena and have a question about how I am trying to structure my first deal. I located a house in Miami that the seller bought at auction and is asking $170,000. The house is a 2/1 with about 1300sf and a huge lot of about 11,000sf. The ARV seems to be around $200,000-$210,000 and there is about $20,000-$25,000 in rehab. I am not wanting to come out of pocket at all and have found a hard money lender that will provide 85% of the purchase and 100% of the rehab expenses at 10% interest. I am trying to see if the seller will hold a note for the remaining 15% at 8-10% interest only and then offer him 15-20% of the profit. I obviously want to get the purchase price down as low as possible but am not sure what would be a good price to still be able to profit in the end. I was hoping to get them down to about $125,000 but I don't know if they will go that low as they "claim" that they have an offer for $155,000. I don't buy it because they are still negotiating with me. Is this a good deal at $125,000? What if I go to $140,000 to try to close this deal? I want to profit but I am mainly looking for the experience. Thank you all for any suggestions.