First time creating a seller financing offer
I am looking to make an offer a 2BR condo for use as a long term rental. List price is 320K and it has been on market for 60 days. The seller purchased the property as an investment property 6 months ago. Story I got was that she lives out of state, thought she had family local to help manage it but they are moving. Seller purchased for 310k, put 100k down and has a mortgage for 210k. I calculated her monthly payment is 1300.
Since it is a vacant investment property where she will be taking a loss at sale and has been on market for 60 days, I am thinking seller financing may be mutually beneficial.
I am planning to make 2 offers:
300k with conventional mortgage. I would be putting 60k down and at 7% mortgage will be 1600/month. It should cash flow 400/month after taking taxes/HOA into account. Seller will be taking a 30k+ loss with this route.
325k with 50K down to seller, 3 years of payments $1600/month, and a balloon payment of 215k at the end of 3 years.
Benefits to me: (1) 10k less downpayment, (2) with the conventional route, the loan would be at 228k after 3 years of payments, so I will gain additional equity with the 2nd option since I will owe 215k (presumably I will have to refinance at that time).
Benefit to seller: she gets over asking price, 50K upfront and $300/month of cash flow.
Does this offer and structure sound reasonable? I have never attempted to make a seller financing or any creative financing offer before so I am trying to get a starting point.
Thank you! Open to any ideas, looking forward to reading any ideas you may have!