Seller Financing Help

[Sam Runge]

Hi BP!  I'm looking for some insight on pros and cons of seller financing and what that formal process looks like.

A family friend built a duplex ~30 years ago and owns it outright and wants to sell.  I believe he might be a decent candidate for seller financing but I have not discussed that with him.  I'm looking to purchase this property as a house hacker to make some updates and expand my portfolio from (1) duplex to then (2) totaling four units and two properties.

He claims he's never had issues keeping tenants and it's a decent neighborhood.  He plans to sell for $265k and I've expressed interest.  My situation would be to purchase at 15% down with traditional financing.  My income is plenty sufficient for this purchase but don't have all that cash on hand so about half that down payment would be a legal gift from my dad (paid back at a small interest).

I'm curious what people see are the pros and cons of my situation, if a seller financing offer makes sense, and what the formal process would look like to make such an offer?

Respectfully,

Sam