Question about Notes - First Timer here

[Steve S.]

Anything I've ever learned regarding money has typically cost me money.

I have a house under contract for $75,000 in which the seller will pay $5000 towards my closing costs. 

2 days later someone comesup and says "I'd LOVE to buy this house for $85,000, but the buyer can only get qualified for $60,000.  Would you be interested in doing a seller financed deal for the remaining $25,000"?

Basically, as I understand it, this would be essentially selling the note.  Can someone give me a quick overview of options and if this is a horrible or decent or great option? (or what additional information would you need in order to help me make a semi-educated decision?)

If I put 20% down and go through closing (with the seller paying the closing), it would appear I'd basically have $15,000 out of pocket.  I'd then immediately sell it to the new buyer for $85,000.

They are financed for $60,000 and give me a check for $60,000.  I'm still out $15,000.

They then start making payments to the bank for their $60,000 loan and ME in 2nd position with my $25,000 lien on the property.  I wouldn't be paying any taxes or interest or insurance on the home as the deed is in the person's name I sold it to.

I'd haveno Property management or repair costs to worry about (or so I think.  hahaha).

After the new buyer pays off all their portion of the first mortgage, they'd be paying me I guess about $200 a month.  For my $15,000 investment, this would be about a 16% return on my money.  Not too shabby.  I'd like to do several of these.

So what am I missing?

I'm probably making all kinds of horrible newbie assumptions and invlid thoughts here. 

What if the buyer is foreclosed on?  I'm in second position so what happens then?

What's the worst that could happen?   I always like going into a deal knowing my worst case scenario. 

Any thoughts from those of you out there that are experience in this area of real estate would be greatly appreciated  My intent was just to rent this house out but I may have stumbled upon a new type of opportunity here that I haven't previously considered.