typically with seller finance there would be some period of monthly payments and then a balloon where you pay off the balance in full. 

Many aren't used to explaining why their services are worth $12,000 (the typical pay for selling an average-priced U.S. home).

This is not uncommon and actual more typical as it is based on sales price and even though the first appraisal was $130k the new one gets reset based on its recent sale and home prices are not up 10% over a few months.You are going to have a hard time getting a lender to use other comps compared to this home as it recently sold.

Easier to predict expenses - typically no major repairs unless from association3.

Spreads between conventional loans are typically 100-150 bps of the loan amount.

That being said real estate investing is typically a long game and with just 2 years under your belt you’ve just started.

How do you typically handle this?

Estimate utilities and figure out who pays them (separate meters, landlord paid, etc)5.

The first year is typically good for most properties, although I've had some rough starts.

Adding a 1/2 bath, new roof, central air or other typical improvements will increase the value of the property.