Long-Term Seller Finance - Pros and Cons

[Tom Horan]

Hello BP - Happy post-Thanksgiving forum browsing.

I have a potential seller finance deal on the line and I'm looking for your thoughts.

This is a 2-unit property in Denver Metro that I'm trying to structure a deal on. The owner is around 65 years old and she doesn't want to use a realtor, doesn't want to be a landlord anymore, is free and clear on the property, and wants to finance the property for her retirement income.  Kind of the ideal motivated seller that I've been in search of. 

The monthly payment is the big deal for her and she wants that payment for as long as I'm willing to keep her around as the financing. In the terms, I would certainly give myself the option of refinancing her out of the deal - but I want to weigh the pros and cons of a long term seller financed deal.

I'm seeing the pros of a long term seller-finance like low down payment potential, locking in a low interest rate long term, and not having the pressure of refinancing if the market turns.

My questions are - what are some other pros of a long term seller finance deal, and maybe more importantly - what are the potential cons that I'm missing?

I'm also looking for some advice with creative structuring. Does anyone have some creative ways to finance a deal like this?  Just looking to make this deal attractive to the seller, and work in my favor as well. I was looking through the forums and didn't see much out there specific to long-term seller finance deals. Thanks in advance for any insight. Much appreciated.