Advice for first Seller Financing Deal of an Airbnb

[Paul Lim]

I've come across a seller financing deal for a successful Airbnb vacation rental.  The Airbnb is located in a good cottage area ~30 min from a larger city.  This would be my first seller financing op.  

The seller is seeking ~30% down and ~$50k over market value for the house.  It seems he/she is more interested in a decent upfront down payment vs. monthly income so I was thinking about offering 25-30% down but for a lower interest rate of 3%, and a 5-10yr balloon (as long as possible).  

My understanding is that typical seller financing deals should offer 85% of ARV. Would it be reasonable to offer 85% ARV, 30% down and 3% interest? COCr can only work with lower interest rates. Would love to hear from and connect with someone with experience in this arena.