Next Property: Sellers Financing (Second Position)

[Kyler J Sloan]

There is a property I would like to get for 650 K but will qualify for 500 K. 

It is next to another STR I have, and having both would allow me to offer joint bookings and access a wider market to house 12+ people.

I would like to get a mortgage for 450 K to pay off the sellers and provide him the difference, where he carries the remaining 200 K to balloon in 2-3 years. This would dramatically reduce my down payment and allow me to roll in some improvement costs into the mortgage. My chief concern is: wouldn't I need to record the second lien AFTER the deal closes for 450 K? Otherwise my DTI will be impacted.

I have the legal right to acquire a second lien after the purchase of course, but want to be sure I am not missing something here. 

Has anyone else done this? 

Thanks!