Structuring seller financed deal

[Account Closed]

Hello, I have a bit of a unique situation. My next door neighbor has to move unexpectedly into his mother’s house who passed away. He is going to sell his house for cheap, needs tons of work, but it’s almost too good of a deal to pass up. 

I have money set aside for purchasing my own single family home soon, which I’d like to avoid tying up. I haven’t been able to get a loan for his house conventionally or through a private lender. 

He will likely sell me the house for $10-15k, the rehab will cost $40k or so. I plan to put a roof on the house immediately for around $9k. I’d like to get the roof on and the water damaged portions of the house gutted, then chip away at the rest of the repairs over the next year or two as I get more cash flow.

I may propose a seller financed deal where I give him a down payment of $5k or so, then pay the rest off over two or three years. He may be able to get more for the house, but he is motivated to sell, he likes me, and would like me to buy the house if we can work out a deal.

Any comments or advice? Is there a good way I can pitch this scenario to him? Is there a better way to do it or any other ideas people have? Thanks!!