Trading a home for a home?

[Amy McDonald]

I have a home that is a real fixer upper that I own....it is paid off.  I would like to sell the home, and finance the home myself, acting as the bank.  

I have had an offer for my home from a man who owns a home currently that he would like to trade for mine.

His home is worth $145,000 and he owes $120,000

My home is listed at $145,000 (coincidentally).  I own it free and clear.  It needs carpet, paint, interior doors, and much more, including kitchen appliances.  It would be worth $165,000 all fixed up.

I am asking for advice on how to make this deal work.  He would finance my home from me.  I would hopefully buy his home subject-to the underlying mortgage and then have his home as a rental.

Any thoughts or suggestions would be so very much appreciated.

I also have an offer from another buyer for my house for $9,000 down and to finance through me for 20 years.

Thank you!!