owner financing questions?

[Jesse Frickle]

my inlaws are ready to retire and they have a duplex that they want to sell. they had it listed for six months with no offers.They had it listed for 275 and they have offered for me to purchase it at $240,000 I want to offer them a sellers finance option but I'm not really sure how to structure it. I am willing to pay for an appraisal to see what it is worth. so my thought are to offer them $10,000 down and do a 30 year note and some kind of option in 5 years for me to finance with a bank and pay them off or maybe pay them another large payment and continue monthly payments. I think owner finance would be a good idea for them and me so they don't take the tax hit and i get a property for a low down payment. How would i structure this? Who would i have draw up the paperwork? Any advice would be appreciated.

[Michael Mulroy]

@Jesse Frickle

I'd see if you can buy out their equity and take over their loan. They likely won't want to be waiting 30 years for their money back.

Say they have 80k in equity, give them the 10k now, finance the remaining 70k over 5 years and maintain payments on their current loan. You could refinance after the equity is paid back or keep it on their terms, which will likely pay down faster as they're paying more towards principle.