Seller Financing vs Traditional

[Tyrone Noble]

Newer to investing myself.  Currently have 2 duplexes purchased last year, and overall going well.  I am laying out the details as I am seeking advice from some seasoned investors as I work to get under contract: 8‑Unit Townhome Style Apartment Building| Year Built: 1952 | Building Size: 6,872 SF | Zoning: R3. Property originally listed at $595K, on market for 1yr, Rent Roll is $7K, used 50% for expense, DSCR loan 8% Interest, 20% Down. Negotiated down to $550Kish, depending on terms. Curious which option looks appealing to a seasoned commercial investor? Appreciate any positive, productive advice.

My Offer:
       Option 1 – Seller Financing    
10% down payment
Seller Note: $495,000
Interest Rate: 5.0%
Ballon: 7 Years
Prepayment allowed after 24 mo.
     Option2 - Traditional financing at $525,000

Sellers/Brokers Counter Offer:

1. Seller financing:
$560k, 15% down, 4% interest, 5 year balloon on 30 year loan. Monthly payment includes 1/12 taxes, insurance, $50 reserve for CoC. Buyer is responsible for the common area lawn & snow removal.
2. traditional financing, $550k.