opinions on this owner finance deal?

[Christopher Oliva]

I'm going to look at a house today, and i may try to structure an owner finance deal with the seller, i just wanted to get everyone's opinions on what i have in mind. 

The ARV on the house is $162500, it needs a lot of work from what the owner tells me. Bathrooms, kitchens, flooring, paint, siding, probably HVAC, as well as possibly plumbing and electrical. the owner also mentioned that someone who gave her some estimates for repairs found mold in part of the duct work. The owner doesn't live there, it was a rental property that fell into disrepair, but she's motivated to get rid of it. (no tenants currently)

The owner told me that in its current condition, they'd like to get no less than $90k for the property.  They have said they'd be open to an owner finance deal if the terms were right.

 I'm thinking of offering a price between $90k-$100k, 3 year term with balloon payment at the end, with no prepayment penalty.  I'd like to not put any money down, and instead pay a higher interest rate ( and also possibly a higher total purchase price, which is why i may pay up to $100k).    

My hope is that I can get a hard money loan for the repairs, turn the property into a short term rental, and then refinance with a traditional mortgage in 6-12 months (knowing that it should appraise for atleast $155k, hope for $160k-$165k) so i can pay the seller the balance owed to her and then also pay off the hard money loan.

What do you all think of this, does it sound smart?  This would be my first deal of any sort, and i may actually wholesale the deal, but i'd like to present the owner with 2 options.  option 1)i'll wholesale the property, get them cash for the house, but not close to the 90k they want.  2)i'll get them the 90k or maybe a little more, but with owner finance terms

Thanks for everyone feedback!