question about pricing a 2 property rental deal in the contract

[Steve S.]

I have an option to purchase two pretty great properties in a prime location. They CoC > 10% in an area that should continue to become more valuable over the years. Already have great tenants that plan to be there for several years, but even if they don't, will be easily rented to new families.

The deal is about $500,000.  One property is worth more than the other so the contracts won't be written for $250,000 each.

The seller asked that one property be written for $280,000 and the other at $220,000, presumably for some 1031 purposes.  

I would put as a contingency in the contract that the properties have to appraise at that amount. 

A more accurate price would probably be $265,000 and $235,000.

What are the risks, assuming the higher valued property appraised at the higher amount, of doing as the seller requested in this multi-property FSBO deal?

What would you do?