Owner Finance deal tweaking

[Aisha E.]

Owner Finance Deal 2 SFR on 1 lot zoned MFR Selling Price: $215k Down payment on signing of contract: $35k Additional Down payment paid in 3- 6 monthly installments by November 2017: $15k Balance of Owner Financed note: $165k Terms: @5% payable in 2 years amortized over 15 years: $1304.80 (P&I), or $1729 (PITI) SELLER: 70 year old Realtor, living in another city, wanting cash flow for 2 years, with a big payment upfront. Refinanced the houses in 2008 for $128k, Still has not paid property taxes for 2015. 2008 appraisal:$188k Has been periodically taking loans to pay property taxes for other owned rentals - now sold- over the past few years. Ignores requests of repair list, and does not want to “alarm” tenants since they do not know of her intent to sell. PROPERTY:: Zoned MFR near an established area in that part of the city. Street has MF units across the street, and a mix of SFR and MFR on its own side too. 1 large lot House #1: 3/2/2, 1480 Sq.ft rented for $975 House #2: 3/2/2, 1455 Sq.ft rented for $950 House 1 & 2 are connected in the middle with their independent 2-car garages. Comps for SFR for similar homes $101k, so 2 VALUE PLAY: Convert the 2 conjoined garages (1 from each side) into an independent 2 story 2/1, 3rd unit. QUESTION: Seller cannot dictate the Price AND the Terms. I have never done an Owner-finance deal,so do not know how the numbers can be tweaked in my favor. All the experts in these kinds of deal structuring, please pitch in your suggestions.