Structuring Owner Financing for Higher $

[Joshua Leaf]

Hello all,

I have found a house in my market that I would like to buy, but the price is a little steep.

The bad: Seller is asking 225 per square foot for an 1100 sqft home (250k total). Comps have list price at 210 per and sales price at 200 per. The house would be an eventual teardown, land prices alone are 150-200k and rising. Last tenants left house in rough shape.

The good: Seller owns the property free and clear and is wanting to get out of rental game. I was looking at spending up to 200k for this neighborhood.

The question: How can I structure a deal with owner financing where I end up paying less overall for the price he wants (250k) than I would for a lower price (200k) but with standard mortgage terms? I'm looking for a couple options to throw at the seller, depending on how much down and time, etc. How does his motivation and my tactics vary depending on if he wants to put money in bank,re-invest, or what-not?

Thanks in advance, Josh.