Making a seller finance offer...

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Hello all!

I am preparing to submit an offer on a duplex where the seller would finance the property. This would be my first offer of this nature, so I am looking for input on what is reasonable/favorable for me. I’m new to this, so go easy on me...appreciate any feedback!

Here are some specifics...

List: 119K

2 bed, 1 bath per side

- The roof needs to be replaced, gutters need to be added, the garage needs around 25k in deferred maintenance is expected.

- both sides are occupied, lease ends in February. Each tenant is paying $650/month, which is under market in my opinion. I would raise rents to $675-700 at the next lease signing. Tenant pays utilities.

Thinking of asking for $0 down, seller financed @5% with a ballon payment at the end of 5 years. Would look to refinance in year 3. Monthly payment would be around $640/month.

Why am I doing this? I have funds tied up in another BRRR property that I plan to refinance in November, so going conventional isn't an option. I want to get into as many properties as I can with low or no money down...and use my cash for rehab/equity building in other properties.