Cash purchase with a note

[Angela Henderson]

Hoping to get an understanding of notes.... We put in an all cash offer to buy a turnkey rental 5k below the asking price. The seller is adamant about getting full price and countered our offer requesting the cash and a 5k note to be paid interest free over 12 months. The numbers look good so we plan to accept but we know nothing about notes. My main question is once we complete the purchase we plan to do a refinance (after we get a tenant), how does the balance on the note impact the refi? Would we need to pay it off like we would on a personal  residential refi that has a 2nd mortgage? Anything else we need to be aware of when entering a deal with a note held by the current owner? Any help or advice is much appreciated! We're in uncharted waters with this counter!