How do I structure seller financing so I still cashflow?

[Kim Handelman]

Hi All,

I have a deal that is comprised of 4 units on 3 linked parcels of land. My debt to income ratio is too high to get bank financing so I would like to ask for seller financing. I ran the numbers with a 30 yr fixed 6% bank loan and the numbers worked (Cashflowing $250 a unit) how do I run numbers for seller financing? The owner is 84 and wants to retire. He's not going to go for 30 year and when I amortize the loan over shorter periods of time the cashflow dwindles making it not such a great deal. How do people make seller financing work?