Seller finance scenario: sell the smaller first, keep the second

[Chris Martin]

I am looking for comments on feasibility of this scenario n today's note market. I guess it's called a 50/45/5. The goal is to move the property more quickly at near full price. (Note: this property is in NC and falls under an NC SAFE law exemption of <5 sales, 53-244.040 (d)8.) This is a typical scenario on property that I plan to sell with owner financing:

80,000 contract price
4,000 down payment
40,000 first D-T (I will offer to SELL THIS NOTE)
36,000 second D-T (I will retain for my account)

Example first D-T terms: 8.00%, 20 year amortization, 5 year balloon. Second is 6.5%, 30 year amortization, 5 year balloon. Example monthly payments for owner/payor:

334.58 first D-T
227.54 second D-T
63.65 Taxes
24.00 Insurance
------
649.77 Total monthly payment

The idea is sell the 40,000 first for something close to face value, hence the better note terms. Property will be owner occupied. All the typical closing protocol (title work, title and hazard insurance, recorded docs, etc.) carried out by the closing attorney. The payor typically will have not great credit, but will be working with a local loan broker to refinance to a "better" mortgage within 18 months. There is no guarantee the payor will be able to refinance. The loan broker will vet the payor. My goal is to cash out (via refi) the first and second positions well before the balloon. Another goal is to minimize the discount when selling the note (of the first D-T.) I have control some over this transaction because I am defining how it is structured. I can season the note, adjust the D-T amounts, and possibly get a larger down payment. Other options for moving the property are retain all the debt (not great-- ties up equity), work with local commercial bank to facilitate (not sure this is feasible), or just sell the property outright (in this market, takes a long time.)

Please comment if the above is a scenario seems workable, especially minimizing the discount on the lower LTV first.