Seller financing and keeping the seller as the tenant

[Brian Hietpas]

I have an opportunity to buy a property with owner financing and keeping the owner as the tenant. I am looking for advice from anyone who has had this opportunity and how have you worded the agreement? The verbiage I have come across is something to the affect of what is below. Thank you in advance

We offer full price with X amount down, seller financing for $XXX,XXX at 5% (or any rate above the prime rate, amortized over XX years with a five-year balloon loan. If we don't refinance in two to 3 years, we will increase the rate to 6% in years four and five.