Best way to work with seller to get home, finance, option or sub2

[Mike Stahlman]

My sister owns that will be empty April 1 (Renter).  She said I can purchase from a her and she wants the loan paid off plus to hold a note for ~60k for the equity.  The ARV (similar homes are selling for) is around 330-340,000. They do not want to go through the hassle of listing and selling the house because they do not live near it and they are tired of renting it (past several years). 

I can actually purchase it for the loan value of 225k with them holding a note the rest of the equity for 1% for the first year, 2% for the second, etc. 

I probably could have them refinance it for a lower payment (30 year) and Quit Claim on to the title, and sell the house in the future or rent it out.  That would bring the payment down from $2000 a month.  Similar homes rent for 17-2100.  So if it will cash flow well I would keep it otherwise I would sell it. 

Or... I could use an option contract?  I could write an option contract to purchase the house with in 6 months and if I can sell it quickly or find a buyer it would be good for us both.  This is a good time to sell and the house needs little to no repair. 

I could do subject to, but currently the rent rate matches the payment so there is no upside for long term hold even though the loan is 3.2%.  I would have to sell it in just a few months to keep from loosing money. That's scary. 

They do not want the equity all up front because of taxes and she owns another house already.  That is one reason they want to hold a note for the equity.  So when I sell it I could pay them the rest, or keep the note in place and use the cash to invest in another property.  Just trying to figure it out.

I know there is a deal there for both of us.  Any Ideas I have not thought of?

I need to write an offer this week or pass on the deal if it is no good or too high risk. 

Thanks,

Mike