Seller Financed Property Analysis

[Matthew Amabile]

Real estate question: ANY AND ALL ADVICE/CRITICISMS ENCOURAGED

So here's the scenario. I have a property that the seller is willing to finance on with 25% down and hold a note at 3% for a year. The property is in a town that I know well and own a 4 unit in as well which is currently being renovated. Some preliminary numbers are below.

Asking price: $149,900

Current rent: $1600 with ability to increase to around $2000Tenants pay electric, landlord pays heating oil and water.Taxes:

$5300 annuallyI like to keep capex, repairs, and vacancy all at 10% for safety, so with a $1600 rent, they equate to $480 monthly

Insurance I would assume anywhere from $80-120 monthly

I have been looking for a seller financed property because I already used my FHA recently and that is my first property, so conventional lending is a little harder for me to get right now. My questions are:

1: What do you think of the investment itself?

2: What other costs will I incur with seller financing? (closing costs)

3: What costs will I incur with refinancing after a year?

I likely will not offer full price for the home if I offer, and if he will not accept under full price, I would attempt to lower the down payment to 10% to increase my COCROI. Also I am thinking of structuring the payment terms as 50/50 (or more) interest and equity on my note payments.