Closing on a owner financing deal!!! (3 properties)

[Kindrell Hutchinson]

Hello,

I am a new investor. I am currently 2 weeks away from potentially closing on 3 properties using owner financing (I am the buyer). The terms of the contract is all 3 properties listed for $278K, with 45K down, 30 years fully amort., at a int rate of 7.905. no balloon payment. The seller wants to do a bundle mortgage for all 3 properties. All of the properties are rented and half are 100% HUD bringing in $3625 per month in rent. I am at the appraisal stage awaiting to get the reports back.

My question is, what should I do if the appraisal come back 5k, 10k, or 20k/greater lower than the proposed price? I feel like this is a very good deal but I'm not sure on how should I negotiate if the appraisals come back lower. The owner is a good guy but obviously does not play when it comes to business. I am a good communicator but, smart enough to walk away from a deal if it's not in my best interest. Hopefully you guys could give some advice. Thanks!