Hypothetical Subject To Deal

[Robert Carpenter]

My seller has an FSBO house with an ARV of $530,000.

He wants $520,000. He owes $290,000 with a payment of $2,400 PITI.

He   wants a Down Payment of $75,000 and a two year balloon.

--------------------------------------------------

My offer: $490,000 Sub2 with a DP of $50,000.

I'll give him a carry back mortgage for his equity of $150,000 with no interest and no payment. And I'll give him a three year balloon. 

-------------------------

I'll turn around and put the house on the market with seller financing for $ 550,000.

I'll collect a DP of $90,000 with a monthly payment of payment of 2,900 PITI and balance of $ 460,000 in a wraparound mortgage with a three year balloon.

-----------------------------

Is this a good deal ?