One other advantage is that many of the builders that I have worked with are able to incentivise the sale with interest rate buydowns that make the deal work.Best of luck moving forward. 

Currently operating and cashflowing, listed for sale What made you interested in investing in this type of deal?

For example on your $400K sale it might look like: 20% down of $80,000, 65% LTV 1st of $260,000, and a 15% 2nd of $60,000.

And other questionsIf I was reviewing this for one of the investors that buys SubTo deals from me, I'd want to renegotiate the down, remove the balloon, make sure my investor has 6 months of payments in reserves, make sure my investor can qualify for a refinance in the even the Due on Sale got called.I would need more answers to know if I would do the deal. 

Agreement for Sale etc.

If you are looking to do real estate sales as well you may want to find a brokerage that hires for both at the same time, and check their credibility.  

They can include foreclosures, short sales, or properties owned by motivated sellers.

However, that made getting the ADU done within 180 days of the ORIGINAL sale of the relinquished property difficult.

.- Negotiated sales price $3.2 (seller financed)- 30% DP @ 7% / 20rs.

I have had sellers agreed to owner financing as well as sellers to take steep discounts, as well as sign a purchase and sales agreement with me on the spot.