Considering owner financing, how is it structured?

[Matt Nelson]

I bought a house to rehab about a year ago. Its been on the market since early summer, and I got caught in the falling market here in Ca.

I bought it and fixed it up for about $163k, and I have been dropping the price, hoping for a buyer. The price is now at 159k, and Ive had a few calls and offers. I spoke to one lady today that was not represented by an agent (yes!) and I asked if she was going to get financing. (The house is in a 55+ area). It came up that I might consider owner financing. Ive read elsewhere that this can be a good tool to sell a home, save some tax and pull in a bit of profit. I own the house outright, no loan.

My question is, how does one structure something like this? Down payment, term, n?

I am just a bit in the dark on this one, never done this before, and the search tool didnt help me out that much...

TIA