Seller Financing the Down Payment

[Rainiel De La Nuez]

I was listening to show 182 on the BiggerPockets podcast today and was blown away by this idea of the seller financing the down payment of a property. I am wondering if anyone has had any experience with this method of financing. What I am getting from this is that if I find the right bank I could potentially have a case where I can get into a deal with minimal cash and get financing through a bank for less than 80% of the appraised value. Can I get some input. Does the following scenario make sense:

Income-producing multifamily appraised at $100,000

Seller willing to set up financing with the buyer for $20,000

Having the RIGHT bank financing 80% or less of appraised value or approx. $80,000

Will a bank require or want buyer's cash in the deal?

Will a bank consider taking the equity in the deal as a down payment in such a transaction?