Hitting a snag with Seller Financing

[Drew Berman]

Hey BP Fam!

Need some support and guidance!  I  am under contract on my 2nd deal (5 unit which is eating up a good chunk of my capital)  Ind the midst of the 5 plex came across an off market duplex in the same area and started a seller finance conversation with the owner.  Initially he said he had a very small mortgage which wouldn't be an issue to pay off.  Now that we are talking numbers he likes everything but wants a larger down payment but below are my first two offers, im pretty uncomfortable with subject to (mostly because of lack of education) but im hoping somone else can see a different play to unlock this deal.  There is a great amount of cash flow and its in my target area.  

Offer 1: 

200K Purchase

5% down = 10K @ 5% interest amatorized over 30 years with baloon at 12. 

(monthly payment: 1019, total interest paid to seller 101K)

Offer 2 (after request for larger down payment)

$207,500 purchase

$15,000 down @ 4.5% amatorized over 35 years baloon at 12

(monthly payment: 911 , total interest paid to seller 95K)

What say you?