Newbie: Partial Seller Financing for the downPayment? Does this deal make sense?

[Mike Barry]

Hi all,

I am new to the option of seller financing, and am looking for advice on this potential deal I have found. The property is a 2 unit currently rented bringing in $575 and $725. Owner who also happens to be the listing broker wants to sell to cash out. He is asking $62,000 for the property. He is offering to seller finance 20% of the property and the remaining 80% would be either cash or if I can find alternate financing. His terms are 2 or 4 yr ballon payment which ever you are more comfortable with, 4% interest or right around there. Amortized over 30 yrs.

I am very new to the idea of seller financing and have not yet gone this route. No better time to start then the present though, right!? Can anyone help analyze this for me to recommend if this deal is a wise investment for me or not. Will I have a hard time finding a bank to not only loan on a small amount of around $50,000 (which is what it will end up being after his 20% down payment), but also financing a deal where the seller is providing the down payment and I am basically coming into it with NMD?

Thanks everyone for your help in advance it is much appreciated.

Mike