How to structure first owner financing deal?

[Taylor Robertson]

I'm pretty new to REI. I did my first deal six months ago on a duplex house hack that's gone great so far. I'm eager to do more deals but capital is my biggest issue.

I was notified today of a family member of mine who is going to be forced to sell due to health & financial issues. Based on what I was told she wants to sell for, it appears to be a great deal on the surface. It would need about 10k of rehab to be rent ready— she wants to get between 70-90k out of it and Based on market research, it would rent for 1200-1300, so well over 1% as well as sell on the market in the 150k range. I’m very interested but couldn’t buy it traditionally for 25% down because I simply don’t have the capital after expending mine earlier this year. I thought seller financing would be a great idea. I just have no idea how to go about that. Also, she still owes $66k on the mortgage so I’m not even sure if it’s possible to do seller financing and, she needs the equity she has in the property upon selling.

My question is, is seller financing even an option if she still has a note on it? And if so, how should an investor proceed who lacks the experience?