Cashback + VTB Deal analysis

[Haseeb Awan]

Hello,

 I have a question regarding receiving cash-back on a property. #s used in this are for example purpose only 

Imagine the property is appraised by bank for 1.1 Million and I am getting it for 1 Million. Bank is willing to finance up-to 85% and the vendor is willing to give me 10% vendor take back. Insurance is 4.5%, so the final price is 1.145 M and there are extra 30k in expenses such as lawyer, inspection and taxes.

Here is the deal. I have the money required to close the property at 1.1 

- I buy it for 1.1M & 4.5% is insurance so total price is 1.14 M. Bank finance 85% which is $977k 

- I paid 147k for downpayment + 30k in closing cost . Total = 177k

- Then owner gives me 100k cash back AFTER closing so I am left with 77k from out of pocket

- Owner then gives me 75k in cash-back on 5 year terms.

Property is 6 CAP which is very good for the city I live in. It's B+ area. Thoughts on this plan ?

Thanks