Duplex Analysis-Owner Financed!

[Chris C.]

Thank you everyone in advance for your input! This is such a great community and I really appreciate any advice or input you can provide. This will be my first owner finance deal so I want to make sure I am on the right track. 

The owner is highly motivated and is a tired landlord. Her husband is going to be out of work for a few months and she has CC debt. She is willing to hold paper with as little as 5k down, we are now at the stage where we can negotiate the interest rates and terms. 

Details: Neighborhood is mixed multi-unit properties and singles. 50% owner occupied. The home has deferred maintenance and I will need to put in at least 1k upfront to fix the porch. 

Here are the numbers:

Ask: $40,000. 

Monthly Income (currently rented) 1100-no other income.

Expenses: LL only provides garbage and water-this runs about 85 a month (have call into the city to confirm this)

Taxes: $2,200 a year. Confirmed. 

What I'm thinking of offering:

Offer $32,000. $5,000 down and the rest amortized over 15 years at 5%. (I have good credit)

Purchase Price: $32,000.00

Purchase Closing Costs: $1,500.00

Estimated Repair Costs: $2,000.00

Total Cost of Project: $35,500.00

After Repair Value: $36,000.00

Down Payment: $5,000.00

Loan Amount: $27,000.00

Loan Fees: Amortized Over: 15 years

Loan Interest Rate: 5%

Monthly P&I: $213.51

My numbers(monthly): 

Vacancy: 110

Water: 100 to be safe

P & I: 213.51

Repairs: 275

Insurance: 50

Taxes: 183.33