Unique Buying Opportunity!! (Seller financing, house hack, brrr?)

[Ryan Rogers]

Hello BP Family,

I have stumbled on a property just 30 minutes south of Seattle, WA and I would love to hear your opinions on this.

I know someone who owns this property outright and the home is completely vacant. The home seems to have good bones. However, will need some cosmetic remodel around the whole house and the house will not go through financing in its current state. Toilets are off, plumbing is out, dry all is open in some areas, mostly cosmetic. Siding is toast. Needs new windows. Electrical and plumbing are all attached and doesn't need to be gutted.

The owner of the home lives in Oregon and does not live in WA. She has told me that she would like 300k to pay off her house free and clear in Oregon. 

I had 2 real estate agents come with me to the home and comp the home on the conservative side ARV @ 600k.

Seller Financing is the way I see I can move into this property. Pay monthly payment to the owner and live in the home non Interest flat monthly fee for whatever we negotiate. (She is willing to do no interest payments) for 18-24 month term to fix the house. ( I would actually house hack the home and have my tenants pay the monthly payment) and fix the home over the 18-24 month term. These payments do not go towards any type of principal towards the loan. Just showing to her that I am dedicated to fix this and make this happen.

After completing a full renovation. I refi the home. Pay her what she wants out of the deal 300k and I take on the loan of the home and live in it, potentially rent and or house hack. My question would be how would this refi transaction work? 

Purchase price 300k

ARV=600k

Is it 80% LTV? So 480,000.

Rehab 50,000 (Rough Estimate)

480,000-300,000-50,000 = 130,000? Is this left over cash or equity in the home? What would the loan terms be after a Refi like this? I guess I am just confused on the #'s or deal. I go to the bank and I want a 30 year fixed after I pay the owner off. What does my loan look like? This may be a lender type question. 

Anyways, let me know what your thoughts are on this. This deal is off market and I don't want this one to slip away if I can think of some creative financing options. Especially since the home owner owns the home outright.

Really appreciate your input,

Ryan