Structuring First Seller Financing Deal!

[Cassidy Burns]

Happy Holidays BP!

I am putting together my first Seller financing deal and I wanted to see what you thought of the terms.  The seller and I have already discussed this a little but wanted to get some feedback before officially offering the terms:

The Property: 

-4 Unit Multifamiliy Building w/ 

-2 Industrial Warehouses on the lot as well 

-Currently rented for $6,250/month $75,000/annual w/ a $500 rent increase coming June 2019.

-Gross Annual income $80,000

-Assessed Value : $977,300.  They recently got it appraised for 1.3 million.

My Offer to the sellers: 

-Their daughter is allowed to live in the property as the onsite manager for 3 years as long as terms of lease are withheld / management is held to high standard (this is their largest concern and why I can get for such a good price.)  I know this has some red flags but any advice on wording of language is greatly appreciated.

-3 Options: 

-$700,000 purchase price 

-$50,000 Down payment

-6% Interest

-10 year term w/ option to extension.  No prepayment penalty 

-$750,000 purchase price

-$25,000 down payment 

-6% interest 

-10 year term w/ option to extension.  No prepayment penalty.

-$800,000 purchase price

-$0 down payment

-6% interest 

-10 year term w/ option to extension.  No prepayment penalty.

I do think they are going to take the $800,000 purchase price.  The property is pretty much turnkey and has all long term leases.  They manager has been increasing rents 3% on an annual basis which is a great sign.  

Thoughts?

Thanks!