Seller carry-back + loan assumption? Help a noob out : )

[P.J. Bremner]

I came across a deal through my wholesale mailers and am trying to make chicken soup out of you know what.  She was way off on a wholesale price, but asked if I was interested in buying the property myself if she could carry back the mortgage.  Here are some of the highlights of the deal as it stands:

• Current mortgage on the property is $128,000
• Current home value is around $260,000 - $280,000
• She wants $325,000 as her minimum (who wouldn't, right? lol) but said she would think about $280k
• I can get the house rented out with about $15k - $20k out of pocket for rehab and furniture and still have great cash flow

My question is this: would it be possible to assume her current loan AND have her carry back the balance?  Would it be best if her current loan was paid off and she just carry back the whole thing?

Thanks in advance for your feedback.

[Michael Seeker]

@P.J. Bremner - is the seller's existing loan assumable?  If yes, then you could assume the loan and have her carry a 2nd note for the balance.  If no, then her loan would need to be paid off at closing which would mean you would need to get your own loan for that amount (or more) or she would need to pay off and provide you a 1st note for the full amount.