Suggestions on how to buy a buds home preferably seller financed

[Michael Rhodes]

I have one rental currently and want to pick a couple more good ones.  SFHs are my focus for what I hope are better clients and RE appreciation.  Not much concerned about cashflow, just equity and payoff so the home flows almost all profit in another 12+ years.

A buddy of mine has an 1200 sqft 3/2 in a decent area with good elem and middle schools and just ok high school.

He bought about 10 years ago at 125K.  Looking at zillow and comparables, seems like not much growth there since things fell after and now climbing back up.  Maybe 130-135 tops(?).  Maybe 125 even.

I am pondering if there might be a good opportunity get into this house with some creative but not complicated financing where I DON'T have to put 20% down and be advantageous to both myself and him.

On the surface, I figure he prob owes about 98K on the house.  If he sells with agents he'll lose about 10K.  If its worth 125K, and I could buy it for around 110K from him, maybe 115K, he can go find what he wants, no risk of waiting time to sell, and maybe we could work out some kind of seller financing where I put about 10K in his hand and go from there.  Saves me pulling out 30K PLUS closing costs and then holding some 6.5% RE mortgage rate to deal with.

I'm not sure how to go about this or how to present it to him.  He's a younger guy and planning to move across town and buy another house.  Not sure how much down he needs or wants for his move goal.  He's looking to move in the spring (unless he's motivated otherwise) and I'm sure he'd be interested in a less complicated exchange, with less effort and outlay of cash for him to "prep for sale".

Help and suggestions would be appreciated.  I don't really want to go into the private loan market.  That just doesn't sit well on heart right now with 2 young kids etc.