Need Subject To Deal Structuring Advice!

[Christian Ferreira]

Good Morning Everyone! 

I want to start by saying I have never done a subject to deal, I have done some research and am currently digging even deeper as I think this may be a good strategy for a deal I am working on. 

I have found a deal that is currently off-market (was on the market but taken down, still under contract with the selling agent). The property is a legal 2-family but is currently being used as a 3-family, making it almost impossible to finance. I had the seller verbally agree at a price of $205,000 cash. I was going to bring in a private investor who was going to loan me $100,000 and I was going to pay the other $105,000. Unfortunately, the investor pulled out because he thought it was "too much work". 

I have been thinking for a few days now and I think a subject to scenario may work out well. Here are some details about the property. 

Asking Price: $205,000
ARV: $350,000
Repair Costs: $50,000
Current Loan Owed: $150,000

My ideal plan would be to take over the loan payment, pay them the equity, do the rehab and convert it back to a legal 2-family, and then refinance it into my name for a long term rental pulling out my initial (or at least a large chunk) of my investment. Somewhat of a Subject-To / BRRRR.

What advice can a experienced subject to investor share? Where do you think I might run into problems? Would the sellers agent still get a commission during a subject to deal, if they are technically in a contract with the seller?

Thank you!