Will contract once...

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Hello all, I have an owner who needs to sell. Its a 3-2 rambler in Luray Virginia. Current asking is 90,000. Down from 115,000. I value it at 80,000. Owner owns it free and clear. He is open to a principal only seller financing and a decent down payment with a five year term and a balloon payment or he wants 50% down, $500 a month for 8 years. Median rent is $850. Rent to own would be an option for an outside buyer. Basically its a "His price, My terms" situation. I may even up my cash offer as well. I'm willing to keep it or assign it to another. I am posting here to ask the help of the group to come up with some options to contract it. Thank you.

Current asking of $90,000. I was thinking something like $25,000 down, $250 a month payment for 5 years with a balloon of $50,000 at the end of the term. $2-3,000 in repairs to be rent ready. $250+ $350=$600 in monthly expenses with a median rent of $850. Leaving $200-$250 of cashflow.  Does this make sense or does it need to be tweaked? 

@John Blow : Ask the seller if he wants more cash now or more cash flow before you offer him a counter. That way you can give him what he wants and still work out a deal to your favor.