HELP! Need Advice On Structuring A Creative Deal! HELP!

[Jesse Vipond]

Hello Friends! I'm looking for advice on how to structure a deal with a little bit of this magical "creative financing" I've been hearing about. I inquired about an ad in my local paper about a 3BR/1BA/2 Car Garage house for sale in a great neighborhood, "solid house, but needs work." I've called and found that there was a frozen pipe that burst. Long story short, the kitchen is gutted to the studs, the bathroom needs total rehab, and there is some plumbing work to be done in the basement. His asking price is $75K. Without seeing the home (though I hope to see it this afternoon), I estimate the place needs $30k-$40K I also know he bought the home just a month and a half ago for $45K.

I can come with cash from a line of credit from my bank, but I'm looking for advice on how I might make an offer that reduces the amount I might pay using the LOC. I thought about offing a mortgage back on the property, or full seller financing, but I've never arranged a deal this way...

$5k down, $400/mo for 10 years, and another $5k at the end, was my initial idea. 

*HERE'S WHERE I NEED HELP, AND THE PART NO BOOKS TALK ABOUT*

In these seller financing deals, who actually owns the home? Also, who pays the taxes? On this property, the taxes are approximately $225/month. If we do, and we rent it out, we'd be at $400/month payment to seller, $225/month taxes, $100/month insurance, and then the payment on the rehab loan. We feel like we could get $850-$900 a month. 

So, again, just looking for advice on how to structure an offer. Thanks in advance, everyone!

[Lesley Resnick]

If you are looking for an out of the box idea:

Partner with the owner to flip the house.

He puts up the house and you the renovation.  After the sale, he gets the 45k for the property, you get your reno costs and split the profit.

This saves you on transaction cost and carrying costs for the house.  It also limits your risk and upside profit since you will be splitting.

Make sure you use an attorney, just to be safe.