Owner Financed deal suggestions needed

[Tandi H.]

I posted about this in the Creative Financing section but didn't get many responses, so I'd like to ask here.  We are looking at purchasing two side by side duplexes, from the current owner.  She is a neighbor/friend, who is 75.  She's owned them for 25 years and they are her retirement asset. 

They were appraised at $260k each about a year ago.  She said she could be flexible on price though for the right people.  She likes us a lot and doesn't want to sell to corporate type investors.  I'm hoping she will take 240k each, so 480k total.  Maybe 500k.

They are all 2/1 units and which rent for around $900-1200/mo in our area, depending on size, condition, yard space, etc.  This is an area that has growing and consistent demand.

The current owner lives in one unit, and would like to stay in it till her death, and wants her occupancy as part of the deal.

How would you structure an owner-financed deal for this situation? I think we could do a down payment of 100-150k (upper end would be a stretch).  I think she would take a partial cash offer, if we could pay off the rest in a short amount of time. Maybe refi in 5 years?  Any suggestions on ways to sweeten the pot for her?  I know she is getting chased by other investors, who may be offering all cash.  So I'm trying to figure out ways to make this work for her.