Can you wrap Seller Financing?

[Steve Cheslock]

I am looking at a deal and curious if it is legal to wrap seller financing notes.  Theoretical example:

1. I purchase a property using seller financing.  Hypothetically $150K with $25K down and seller carries the $125K note at 6% interest only payments with a 10 year balloon.  

2. 6 months later I sell the property using seller financing.  I sell it for $300K with $50K down and I carry the $250K note at 6% interest only payments with a 5 year balloon.  

In this scenario I'll make $25K on the downpayment, the spread for 5 years and then just pay off the note I have on the property when my buyer pays me at the 5 year balloon.  Is this legal? 

I recognize the downside is my buyer defaults and I have to take the property back, but I am completely ok with this.  The deal is a great deal but I don't have time to do it right now.  In 3-6 months I'll have a lot more time so if the back end buyer defaults anytime after the 6 month mark I'm fine with it.  

I'll consult an attorney but wanted to run it by the BP community to get your feedback.  

Thanks so much.