1st seller finance offer. Need some help

[Cody Barrett]

If anything we can call this practice : )

Property is a side by side all brick duplex, newer windows and roof.  2bed1bath 800 sq ft separate basements and all utilities are in the tenant's name.  Desirable area. 

Value: $105k right now $120k fixed up. 

Rents: Fully occupied at $650/unit total of $1300/month. Long term tenants. FMR 700/month

Taxes: $3515/yr

Asking Price from seller is $127,900 

My offer:

Purchase price of $85k with $10,000 down of OPM.

Loan amount from seller: $75k at 8% APR, 5 year balloon interest only payments of $500/month.

Option to pay towards principle after minimum monthly payment is met. 

Option to payoff principle balance before balloon period with a fee of $2,000. 

Seller's Result:

60 months of interest only payment of $500/month = $30,000

Principle Loan Balance payoff after refinance: $75,000

Initial downpayment received of $10,000

Total to seller from me after 5 years: $115,000

This would be my 2nd deal if done and I wouldn't be using my personal money to acquire it. My DTI is not good enough right now for a bank because my rental income from my first deal earlier this year is too new to account for. So creative financing it is.

If you were the seller, would this look at all appealing or am I going to get laughed at? Totally cool if I do.... haha

Thanks for the help!