Please help me analyze this seller financed deal.

[David Hammill]

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These are two properties, 5 units and 1 garage.  The property is 66% rented.  The two vacant units are as follows:  One just had an eviction, the other is vacant and could use new carpet and paint.

The area is blue collar and low income.

The buildings themselves are 6/10.  They are older and will need repairs in the future.

My plan would be as follows:

Purchase for $200,000 with 5% down so I would be into it for $10,000.

I am asking that the owner hold financing for 5-7 years at 6.5% while I save the monies, improve the properties.  At that point I would have the 20-25% needed to refinance the properties and pay off the seller.

Am I missing something?  What should I be looking closer at?