Since you're getting a loan, it will be considered a "purchase money" loan, and the value will be the appraised value or the purchase price, whichever is lower.You'll have a down payment, too.Now, you might be thinking you could represent to a lender the purchase price was, say $60K, come up with $10K in closing costs somewhere, and get a $50K loan.

This is not to denigrate Alan's course [it was an, interesting, read... ] but it was constructed pre-2008, before the SEC and many state regulators started becoming more viligant at monitoring the increasing number of real estate investors issuing securities [if you are raising capital from investors to invest in real estate....]Whichever course you elect to use, or not, or self-educate, seeking out an active attorney current on your state's and federal SEC law is ESSENTIAL, before you mail out any post cards inviting folks to luncheons or otherwise ADVERTISE for investors [as Alan's course advocated when I perused it].The red flag to state regulators is when ads appear, if the advertiser has not complied with the proper state registrations prior to soliciting investors through advertising, you've just created a HUGE target for yourself in most states.....On the other hand, a good attorney practicing in your state's PPM or private offering realm can protect you, and review your offering to investors....and save you some stiff penalties[you've probably heard of the one old school very successful investor, sort of the grand daddy in the private investors area, was actually shut down, for a comparatively MINOR failure to maintain proper paperwork, i.e. whether funds would be returned to investors after each project, or rolled over to the next project..., simple paperwork, had it been drafted correctly, and then proper records maintained]Best of luckBob

When the property is free and clear, to ensure the buyer avoids any possibility of the payment shock guideline when they refinance, we generally use a factor of current market rate + 1.5% or 6%, whichever is greater plus or minus any juice you want to add.

thx Paul...i will..well, i was super excited by the idea that i could get into real estate without any money at all and so i told a bunch of my friends about what i was doing...told them the kinda properties am looking for and then all of a sudden they all started calling me to inform me about whichever deal they would find...and they are doing this for free...so this deal in particular is the one out of the sooo many that seemed in line with my plan...ya so that's it...hope that helps Jahvin

So what I am finding is most banks will give you 70-80% of appraised cost or actual cost, whichever is less. 

@Joe Fairless Between SFH and multifamilies, I'm not committed to either, but open to whichever numbers make sense.

You can refi up to 80% without PMI of your hard costs or the appraised value, which ever is less.

More towards your question - it sounds like you want to do a partnership contract with her where you commit to paying her 335k in 6 months or when the property sells, whichever comes first.

If you want to keep doing this type of arrangement in the future I would change the contract to say that the pet fee will apply while they have the pet or until x number of dollars (make x whatever you would have charged as a pet fee) whichever is greater. 

With whichever method you choose to use remember to MEASURE YOUR RESULTS and make proper adjustments to tailor your marketing strategy to your targets.