Anyone see a problem with this deal?

[Matt Maluchnik]

Triplex - Based on cashflows I can get an 8% COC Return using a conventional mortgage and offer $109,000. (Seller wanted $170's...but she really wasn't sure what it was worth...and she even mentioned she would be interested in financing it)

Since, I can't get to $170k and make sense I thought maybe I have her finance it.  If it's worth $109k to me now...then 10 years from now assuming 2% appreciation it will be worth $132,870.  So i figure I break it down with a $132,870 purchase price but she finances it with a 10 year note (0% interest).

Income: $1,500/mo (fully rented as is right now)

Fund: $450/mo for Repairs, Management, and Cap Ex (30%)

Payments to them: $710/mo

Profit to me: $340/mo 

Then after 10 years the property will be paid off mostly by those tenants and I can refi to pay the remainder off.

Am I missing something?