I am still new at this game.@ Jay - I did look at raw land comps near the property (there is a few around her place), and they are waaay under her asking price. 

You can somewhat 'play' with that scenario by upping your appreciation input, but to me that is gambling if you push it too high. 

Most are going to want some skin in the game until you have proven yourself with them. 

Get into another 30 yr 3.5-4.5 % interest loan with 3.5% down payment..... and you still have probably over 150k to play with on an investment property purchase.

I think the best play is to go conventional at 70% LTV, refi after 1.5-2 years and go CMHC for long term.What are your thoughts?

Hello,I am generally new to the real estate game.

Oh, by the way Mr/Ms bank- if they cash flowed, I wouldn't need you.1. 50k debt, worth 100k2. 50k debt, worth 140k3. 25 debt, worth 125kI REALLY need this to happen so I can get back in the game.  

Otherwise you would be playing a "slow mans game" if you only focused on cash flow.

Sounds like you got a gem, the better play would be to BRRRR and hold it.

sounds like you have a great opportunity. i recommend the contact for deed route. as you mentioned you can get a lower down and more flexible terms. if you can get a 10-12 year ballon payment you should have no problem refi'ing out prior to that with a conventional loan and pay off owner contract. i would try to get the per unit down. you could try to show the total amount you would be paying when you add interest into the equation and see if he will come down on asking price, at least to market if not below. as well as play up the continued cash for with zero management headaches. ultimately if it cashflows well and you have good fixed debt for 10 plus years my experiences has been that price per unit is less of a factor. cash flow is king.