Wholesaling a home with a mortgage ... Land Contract?? #casestudy

[Angel Hernandez]

Hello Everyone, 

Just wanted to get some insight on a deal that I want to wholesale. Heres the situation...

Seller has property on market which needs some work. She started on renovation but has not come close to completing. She is willing to come down on the price given the condition of the property and after showing the comps in the area. She is interested in creative financing which would take the burden of the rehab off of her and allow for some monthly cashflow. But... She has a mortgage. I am worried about the DUE ON SALE CLAUSE. I am thinking a land contract would be the best option since the seller would still maintain ownership, avoiding the possibility of due on sale clause to take affect. What do you think? 

ARV-$210,000

Rehab costs- $30,000 

Remaining Mortgage Balance- $91,000 with $700 mo payments

I would like to offer a land contract 

purchase price- $125,000

Down Payment- $5,000

Interest- 0%

Length of Terms- 8 years / 96 months

Monthly payment- $1250

With the option to buy out contract early with no penalty. 

Would this be the best strategy to use? If not, why? And how can I lock this deal in without having to pay 90k for the loan or get stuck with the possibility of a Due On Sale Clause? 

Thank you in advance!