[Insert bit of personalization about who I am, my family, and build trust, essentially humanizing the note].I understand that selling a property can be a significant decision, and may not be one you are considering, but if you are, I want to assure you that I approach this with respect and am eager to explore the possibility of finding something agreeable for the both of us.Here are a few reasons why seller financing (you not the bank) could be beneficial for you:- Steady Income: Seller financing offers you a reliable source of income, providing monthly payments without the hassle of managing the property directly.- Flexible Terms: We can discuss flexible payments that suit your needs, allowing you to customize the agreement according to your preferences.- Avoiding Hefty Tax Burdens: By spreading out the sale over time, you may mitigate the impact of capital gains taxes, making seller financing a tax-efficient option.- Legacy Planning: If you're concerned about leaving a lump sum to your heirs, seller financing allows you to pass on your wealth gradually, ensuring financial stability for your loved ones.- Minimal Hassle: Seller financing eliminates the need for bank involvement, reducing paperwork and streamlining the sales process.- Assured Sale: Choosing seller financing may attract a broader pool of potential buyers, beyond myself, increasing the likelihood of a successful sale.I believe that by working together, we can find a solution that benefits both of us.

Here is an example assuming $500K sales price, $100K down, $400K loan and appraised value of $450K.Down payment = Appraised Value * 20% ($450K * 20%) + Difference between Sale Price and Appraisal ($500K - $450K) or $140KIn this example, loan amount is reduced to $360K and down payment increases from $100K to $140K.

•Interest-Only Payments: During the draw period, you may have the option to make interest-only payments.

It sounds like a refinance would be a good option for you, but I'd just make sure with our current interest rate options out there that the monthly payment on that new loan would makes sense. 

Does the $3500 house payment include the taxes & insurance or is that principle only?

I told him he has an obligation to keep investors informed and up to date especially if he wants repeat investing and wants to gain trust.

I need the monthly payment as low as possible to get into another next year.

I would like to buy a house, but currently do not have enough saved for a down payment.

or, are just looking for enough equity for the down payment?

An upfront payment to a lender is a loud red flag, and I agree with everyone here that you should run away, fast.