Can someone help me decipher what this means (owner financing)?

[Ryan Roesch]

Hello All,

I'm a relatively novice real estate investor from Virginia and I'm looking at a property for sale and noticed it was FSBO. I emailed the owner asking if he would be interested in an owner financing deal. Here was his reply:

'We can take back a small mortgage and it could even be in 2nd place but we need to get at least 200,000 at closing. The balance could be over 3- 5 years, let it be a small monthly payment $50. or so maybe 6 % interest and then balloon the balance due at the end of the term.'

Additional property details

• Asking $229,000
• 4 beds, 3 baths
• Consistent rental history
• Near a major hospital and university
• All furniture comes with the home (interesting)

What exactly does this mean? What could be my potential options here? All advice is greatly appreciated.