OWNER FINANCING FROM A FAMILY FRIEND FOR MY FIRST REAL ESTATE DEA

[Gary C Jones]

I am currently going to be attempting to do a owner finance with one of my close friend's father. We have had a good relationship for over 30 years. He owns the property free and clear. This one is a SFR, currently with a tenant. 1,056 sq ft., 2 bed 1 bath. I believe that adding a 3rd bedroom and another bath or half bath would increase the value. As it sits now, I would say the value is about $80k. Any ideas on how to structure this deal would be greatly appreciated. I was thinking about offering $80k, putting $10k down and financing the remaining $70k for 15 years or 180 months with 10% interest. So the monthly payment would be about $389. Is the interest (10%) added each month? If so, payment would be about $430/month. Thanks for any and all input and advice.