Owner Finance Help or Creative Financing

[Susan Dobbs]

I am a total rookie (own 1-duplex and currently my SFH residence). We were planning on cash out refinancing our current house (have owned it 10+ years), turn it into a rental, and buy a house with a conventional loan. Bank will refinance us, but will not let us do a cash-out refinance right now because of Covid...long story short, my mother in law moved in with us and our house has shrunk and I need to purchase a new house ASAP! I have $50k which is not enough for a 20% down on a house that I am interested in (house is listed for $303k). We have also ruled out and FHA loan.

Seller currently has it on the market (according to Realtor.com, it has been listed for 44 days), needs major TLC but has fantastic bones and know we can reno while we live there (and put MIL in the converted garage). House is on a unique property on an acre lot in an up and coming desirable neighborhood. I realllly want this house.

Drove by, neighbor was outside and told me the original owner passed away in 2018 and the son currently lives there and is selling. Seems to be a bachelor.

I am giving you all this info so you can give me advice on how to approach the man to see if he would consider owner financing. In your experience, if owner financed, do they get their list price or is that negotiable? I was thinking 5% interest only for 4-5 years at full asking price. He has it listed with a realtor but I was thinking of contacting him directly. How would that work? Can I write him a letter or do I have to go through his realtor? What about the deposit? 

I appreciate any advice you all can give me!