First deal ever need advice on financing options.

[Alex Jeffrey Steady]

Hello BP World,

I'm going to attempt to get my first property under contract this week! The owner has multiple properties shes trying to get rid of. Shes an older lady and is struggling to deal with the properties paying the taxes or even keep them in good shape or rented. Shes taking care of her mother and needs her problem solved. She told me she owes $38,000 she purchased in 03 for $78k so her dad would have a place to live. She owes $1703.85 in backed taxes. The home is currently SFR but is zoned as r-3 multi. The goal is to convert this to a duplex, it should be pretty easy. I need to split the electric to two meters and it has dual zone heatpump/ac already, also I need a kitchen and washer/dryer hookups. I'm pretty sure I need a second egress point aka an exterior set of stairs. I mentioned taking over her mortgage and she seemed ok with that idea however I have a 1099 job and financing is a pain for now. A subject two seems like a bad idea first starting out and I don't want to get screwed. I like the idea of owner financing because I know she'd take very fair terms. I was thinking about 10 years with a pay in full clause for maybe $40k at 4% and I think she would work with $500.00 down. Zillow says it's worth $108k and the city says it's worth $122,800 also it's 1712 SF. I know that I can get $575 for a 2-1 through section 8 for each unit and it should cost around $15,000 or less to fix up this property, it is in good shape for being vacant. I've walked the property with someone whose flipped over 100+ homes. She believes that $40k would equal a great flip, but I believe buy and hold makes more sense for this property.

Honestly I'm looking for a walk through on how to do the deal for owner financing and I can get the money to convert this to a duplex from a partner of mine. Sorry this is so very detailed I'm just excited and freaking out.

Thanks Team!

Alex