Appraised $170,000.Total Appraised value: $490K. 

The county/city zoning board has said this unit is not an issue and is grandfathered in, but he's worried about the more stringent FHA appraisal/inspection3) Buyer "skin in the game" - doesn't want to be left holding the property again as this has happened to him at least twice on previous land-contract/CFD arrangements4) Ability for buyer to acquire traditional financing at balloon5) Effective total cash to the seller is a primary driverWe submitted an offer that solves all these problems:Property A:Purchase price: 360k using FHA loan, owner-occupiedProperty B:Purchase price: 305k, 0% down, 25 yr amortization, 5 yr balloon, 4% interest rateNote + mortgage arrangement with professional loan servicing/escrowAssuming a 9% annual return in the stock market, this arrangement is equal in total cash to seller (including accounting for inflation,etc).

A red flag would be the Realtor asking you to go above your budget and asking you to remove the appraisal/financing contingency from the offer/contract.

So if I bought for 215K, put 20k in, and get it appraised for say 275K.......2.

Would the bank give you a 'mortgage' for 800k, or is it subject to appraisal?

Another option may be making an offer and allowing time for financing, but don't make the offer contingent on financing or contingent on appraisal.

The main thing usually POC (Paid Outside of Close) is the appraisal.

Add in about $2500 for the title attorney, $2000 for insurance, $700 for an appraisal- that's $9200. 

@Dmitriy Fomichenko I'm looking forward to the appraisal once its been stabilized.

That home went through some renovations and recently appraised for $229K and I owe $178,863 on the property and currently have that financed on a 30-year with First Federal of Lakewood for 3.07%.