I understand the risk it comes with if I have vacancies, but I do have a couples of months of mortgage saved to use in case I get stiffed.

I know your involved at a high level with Board of Realtors and state regulators .. 

There’s nothing special about the seller financing terms here IMO, unless you can’t get a conventional loan of course but if that’s the case the balloon payments create a high risk for you and you shouldn’t do it anyway.

With your additional $100,000, you’d have a nice cushion to renovate or furnish a property like that.It really comes down to how involved you want to be and your long-term goals.

@Allen Masry you stated you want to invest passively, so real estate is out, except for REITs, which are part of the stock market.You might be tempted to invest in a syndication, but those are high risk and you really need to research and then monitor them.

Additionally, add in the ambiguity/risk of the due on sale clause or ramifications on the conventional loan of transferring the property from your individual name to an LLC - the economics don't make sense, and the headache isn't worth it even if it did, in my opinion!

Long-term leases are less operationally complex and face fewer regulatory risks - more stable and scalable option.

What is the loan to value - this is for risk and secure the real estate to make sure its not unsecured.2.

Your plan to house hack a multifamily property in Indianapolis is a great strategy to start building equity and learning the ropes with manageable risk.

RE has risks.