---one has been in place about 1 year; just started a new 1 year lease; seller says he is a PITA and it typically late on his rent, but pays the lease-ordered $25/day late fee-Seller said he wants to enter an owner carry / owner finance scenario, as he wants to spread out his tax liabilityHere's where I need your advice:-Seller paid $150k for both properties four years ago. 

@Jon Ankenbauer speaking from a lenders point of view, the seller carried seconds went out some time ago with most of the main buyers of mortgage loans.

Owner carry is definitely worth something.  

The reason is that you don't want to carry bad debt.

Basically meaning the bank won't sell the mortgage later and will carry it until maturity, which offers them a lot more flexibility in their underwriting.

Bad scenario would be coming out to $280-$290 on top of carrying costs and cost overruns.Cookies?

You have a good case as you are not the cause of the flooding or resultant mold.I don't know if you have or is required to carry renter's insurance.

These loans a generally more flexible but carry a higher rate, or sometimes an adjustable rate, or sometimes they are 15 year mortgage....and sometimes all three.

The percentage depends on the deal and the type of deal it is, whether they're lending on the asset (purchase price) or the post rehab ARV.The asset based lender will lend around 80% of the purchase price (after their own appraisal of the value), leaving you to cover the remaining 20%, any closing and carrying costs, plus the cost of the rehab. 

Everything gets put in your name.Only difference is that the prior seller carries the note instead of a lender.