Seller financing a duplex

[Korey Scott]

Hello and thanks for stopping by to help!

i have a couple questions and see what everyone thinks! i would also like to have everyone's opinion on how to proceed! 

Okay, here is the deal. i have a someone i am speaking with about a duplex she owns. She wants to still live in the upstairs unit which is 2 bedrooms. Down stairs is 3 bedrooms. The leases are sublets per room at $400 per room. What i was think is offering to do a seller finance deal for 5 years with a balloon payment. i was going to have her live upstairs for free for a year instead of giving her a down payment. She is asking $99,000

Location is Kalamazoo Michigan 

Rents as far as i know total $1600 for the downstairs 

insurance is around $80

Taxes are around $150

payments to her i would assume to be around $800 

Any advice on how i should approach this i appreciate! thank you so much!

[Colleen F.]

Also you need to agree on expenses you will pay on the upstairs while she is living there. Is it seperately metered? electric, trash, lawn mowing, plowing water? what happens after 1 year? what are the expenses now?