Seller will be taking a 30k+ loss with this route.325k with 50K down to seller, 3 years of payments $1600/month, and a balloon payment of 215k at the end of 3 years.Benefits to me: (1) 10k less downpayment, (2) with the conventional route, the loan would be at 228k after 3 years of payments, so I will gain additional equity with the 2nd option since I will owe 215k (presumably I will have to refinance at that time).Benefit to seller: she gets over asking price, 50K upfront and $300/month of cash flow.Does this offer and structure sound reasonable?

I thought the 'add 1-2%' interest rate sounded low.

Legal and Regulatory HurdlesReal estate transactions involve legal complexities that can overwhelm newcomers.Solution: Learn about legal requirements early on and seek professional advice when needed.

You got some solid advice above check with your lender and get in contact with an attorney like @Bob Floss II who can help setup the OA.Assuming there is no pushback from your lender, you should be able to do a quit claim deed to retitle. 

Sounds easy right?

I dont want to hear about you selling me your course or advice at a "new customer price" .

Please let me know what is convenient for you, and we can set up some time to meet.Aloha,Barb That sounds great, Barb.

I could really use some help finding escrow officers familiar with subject-to deals2. any advice you would give to someone starting out in creative finance is very welcome.Question to the group: How often do you close subject-to deals? 

Sounds like you are going with a Fannie/Freddie type loan based on the cap of 2%.  

It’s difficult to find levelheaded conservative advice.