Help me Formulate Seller Financing Terms

[Nick Rose]

I have a 3 building multi-property (1 commercial and 2 multi-homes) in Michigan that I am considering, for which the seller is willing to finance.  He has owned it since 1996, and is over 60 years old and still works full time.  According to him, he says he needs to sell for family medical reasons.

I haven't nailed down exact numbers, however I'd estimate a seller financed price of 140K, and he suggested 10% down.  He would do 'much less for all cash."  I'd rather not use so much cash on one deal, so seller financing is my goal.  Any suggestions on how to structure a seller financing deal?  Not sure what the common term lengths, interest, etc.   I think it's been on the market for quite some time.  Property definitely needs some cosmetic rehab-it's been a bit neglected.  I'm considering offering a higher down payment with a reduction in sell price.  For example, if I were to offer 8% interested+principal, 30 year amortization, 7 year balloon.

Reasonable or unreasonable terms?  Any input/suggestions are welcome.