Irvine, CA - How would you offer on this seller financing home?

[Jeffrey Magenes]

Irvine, CA 92604
$520,000 (Asking = Approximate Market Value)
3/2 - 1,500 square ft rents for $2,100

The owner has a free and clear title and is willing to seller finance it. The selling agent wouldn't give me any details other than that he wants to be out of the property completely in 5 years, but is willing to carry some debt now as long is it is secured by a credit worthy buyer.

I am the prospective buyer and typically buy for long term appreciation, cash flow income (I think it's a fools dream to invest on property appreciation/speculation). I have sufficient funds to cover the property, but having a balloon payment in 5 years bothers me. Is there anyway to structure this so that in 5 years and the housing market still hasn't turned around (or interest rates go up) I have options?

What can I offer him or do to put myself in a good situation to profit? Offer under market value, take title, and keep on market to try and resell for higher price? What is your standard seller financing offer?