Subject-To vs Land Contract

[James Hughes]

Hey guys I need some help! I have a 4-Plex that the owner is willing to seller finance the note for me. The purchase price is $750k and the owner has a $150k mortgage on the property.

If I purchase the property I have the ability to convert both basements into 2 additional units which will significantly increase the value.

My question is how should I structure this deal? Can I structure it as a subject-to, take over her payments & give her a down payment she is comfortable with & have her finance the remainder of the loan?

This would be $750k - $150k - down payment = loan balance? I’m this scenario I would be making two payments, one to the mortgager and one to the owner?

Or would it be better to structure it as a land contract, have her continue to make her mortgage payments, then have her finance the balance of purchase price minus my down payment?

She is elderly and stated that she would like to aim for a 5yr loan (30yr amortization) which is fine with me because adding the two additional units will increase the overall value so then I can refinance out at a much higher ARV.

Any help or guidance here would be awesome, thanks guys!