owner finance deal questions

[Jessica Edmond]

I've got an owner willing to do owner finance/rent to own for 18 months @ 10% down of 110k. They will be putting my down payment into a non-interest bearing account and at the end of the 18 months they expect payment in full. I plan to live in it and fix it at the same time. It needs alot of work due to a recent storm. However, its worth apx 150-170k ARV. I tentativly agreed to the 10% down, plus 500$ a month rent and home repairs will be up to me of course.

My plan would be to refinance it at the end of the 18 months and pay the remainder of the loan off.  The monthly rent of 500 would also accumulate against the final amount due. 

Wording in the sellers contract says if i cant purchase in 18 months, they keep my 10% down.  I'm not real keen on that.  Most especially since repair costs will also be coming out of my own pocket. 

Any suggestions to make this deal feel a little less risky? Your thoughts, comments and reccomendations please.

JE