Combination of Subject-to and Seller Finance Opportunity

[Bo Tully]

I currently have an opportunity to purchase a single family residence that I plan to operate as a long term rental. My mother in law is the seller and wants out of the property but is interested in collecting monthly income rather than the lump sum up front by selling. I proposed the idea of me buying the property subject-to and then her seller financing her equity to us. The structure I proposed was a down payment up front with a 5 year balloon payment and the equity financed over 20 years. This would be my first subject-to and first seller finance deal so there are a few questions I'm hoping to get answered as I try and put this deal together.

First, I am looking to purchase due-on-sale clause insurance. Does anyone have recommendations of a company that provides this service in Washington?

Secondly, I will be working with a lawyer to draft up the paperwork and would love to hear any recommendations of lawyers experienced in these types of deals in Washington.

Finally, with the seller being family, are there any other nuances I need to be aware of to move forward with this deal (assuming the lawyer would provide guidance here but curious what the bp community knows)?

Thanks in advance for any feedback. I really appreciate it!

Thanks,

Bo