Owner financed 4-plex, to good to be true?

[Dan Osterman]

Details:
North Carolina
120,000 FSBO
4-plex 600sq st each 1br/ba. close to downtown living. solid brick building, new water pump, has washer/dryer on location, no major upgrades needed. all 4 units occupied and rented at $475 (good location, not worried at all on getting renters in place)

I love the property, but need to offer a sound owner finanaced deal that will releive him of having to worry about the property and allow him to enjoy retirement.
Looking at atleast $1800 a month after handling water payment.
My plan is to put 10% down (12,000).
agree to pay $1000 a month = 12,000 a year (this is where I could use some advice to better structure this payment...)
10 year pay off date. (i handle all fees, maintanenece, management etc of course)

Will this work, or will there need to be a balloon payment in place after 5 years? I see that mentioned a lot with owner finanaced deals.

Owner is over 70 and lives in another state, wants to sell and enjoy retirement.
Property has been listed for over 6 months. I went inside one unit and really like the place, no appraisal done - but I am looking for cash flow properties and this looks like a steal!

I plan to throw an additonal 5-10K a year at the principal as well to pay it off early, but do not want to lower the payment term to less then 10 years to be on the safe side. I would like to stretch the term longer....but not sure if the buyer would be interested in anything longer then a 10 year payoff.

Any and all advice is greatly appreciated. Thank you!