Is there any downside to this scenario?

[Brian Sorensen]

From seller:

Okay here is an idea proposal: price $160,000 you put $3000 down get a loan for $112,000 being 70% LTV that = the $115,000. We take back a 2nd mortgage for$45,000 with a no penalty for early payment and you buy out that 2nd mortgage for $1.00 in about 30 days after we close..... The payment on 112k loan for 20 yrs at 4% is about $840 month + taxes, ins, utilities will be about $1200 month and income is over $2400 month leaving great cash flow! You have an almost 100% financed property other than the 3k invested! What your thoughts?