Seller Financing Interest Only vs Principal Only

[Anthony Stamper]

I'm new to this, especially looking at multiple option offers. What is the best way to present interest only and principal only options to the seller without insulting them or making me look like the novice that I am. Here is the actual deal I'm trying to make happen on a property that needs carpet, paint, new shower, bath flooring, kitchen cabinets. I'm estimating $15k (high) for this. They are asking $84,900 and the ARV is only $83k. I'm looking at this for a buy & hold (15+years).

OPTION 1

1. ‘All Cash’ purchase price: $62,000
2. Full purchase price payable to you at closing.
3. We pay all closing costs.

OPTION 2

1. Purchase price: $70,000
2. We pay all closing costs.
3. $10,000 cash to you at closing.
4. Seller to finance the balance at 8% interest only payments for 5 years (term) with full balance payable at the end of term.

OPTION 3

1. Purchase price: $83,000
2. We pay all closing costs.
3. $10,000 cash to you at closing.
4. Balance to be paid in 180 equal monthly payments.