Seller financing only works in an appreciating market?

[Dan Rusu]

Is my logic off or does seller financing only work if the market is appreciating? The sellers that I have talked to want 5 year ballons no one wants to hold a note for 20-30 years. Let’s say the market turns as many are predicting and values drop. What happens in 5 years when you go to refi and the property is worth 30% less? You won’t be able to pay off the sellers note. 

[Steve Vaughan]

Quote from @Dan Rusu:

Is my logic off or does seller financing only work if the market is appreciating? The sellers that I have talked to want 5 year ballons no one wants to hold a note for 20-30 years. Let’s say the market turns as many are predicting and values drop. What happens in 5 years when you go to refi and the property is worth 30% less? You won’t be able to pay off the sellers note. 

Balloons definitely represent a risk, but my 2 that had 5yr balloons were fine.  
If you don't overpay and add value the valuation risk at refi goes way down. 
Make sure you own it day 1.  No land contracts.