Creative Investing: Owner Financing - Questions

[Skylar Simpson]

Hey guys! So this is my first post (other than intro) so forgive me if I do not do this right. Here is what I'm looking at:

I have a potential seller of a home that's in great shape. The home is a 3 bed 2 bath with 2 bonus rooms (could turn into rooms if had closets) - 1638 sq ft. The ARV (though needs no repairs) is 259,900 and has a PITI of 725. It's in a nice neighborhood (quiet/close to down town etc..).

My plan: Buy it on Owner Financing at 259,900, between zero - 5k down (still discussing this w/ seller) and about 1000 per month payments. I would then resell this property for 299,900 (or more still deciding) with a much larger down payment (15-25k at minimum) and between 1200-1500 monthly to my new buyer. I'd plan on a double close/simultaneous closing. I will be using a lawyer to write up the deal and close it for me. 

This issue: She still has a mortgage on the home - she is aware of the potential that her lender could call it due but this is not a concern of hers (I'll have a CYA letter for this). She owes 62k on the home still. Her biggest concern is would the $1000 payment I'm making be considered income and cause her to be taxed more. She would technically only be receiving $275 in hand after paying for the mortgage payment (I'd prefer/plan to send the payment directly to her lender). 

Question: How is this $1000 monthly payment to her affect her taxes if at all? What other things should I take into consideration for this specific type of deal.

Thank you guys for your help and I look forward to hearing the responses.