First Potential Deal...

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A guy I work with today came up to me and told me he knows a lady in town that needs to move quick.  She is in a single family home and it's right down town.  He gave me a price that he thinks she needs to get (240ish) she still owes 230k, but I haven't seen the house yet to get a good idea of what I think its worth.  I thought this might be a good opportunity for me to try to get some owner financing and rent it out and then refinance in a year or two with a bank and then pay her off.  

I am hoping to see it this week but does she have to own the house outright in order to be able to work out some kind of owner finance situation?  How should I pitch this to her in a way that showcases how I bring value to the transaction?  How exactly would you structure some owner financing?  Would you hire an attorney to draft some contracts?  Does she keep her name on the mortgage or assign it to me?  I could just list it for her and try to find a buyer through conventional Realor methods but I think this might be a good way for me to get my feet wet with my first deal.  

Thoughts?  Advice?  Something I didn't think of?  I appreciate the feedback!

@Shamus Quirk Well, I think it all comes down to what's the property ARV and what repairs does it need. If the deal has plenty of equity, why don't you try to fix and flip it? You can partner with an investor or if the deal is too good, you shouldn't have any problems finding a Hard money lender who is willing to take the risk .

Seller must be very motivated to go for owner's financing. Do you know if the property is currently listed on the MLS? How does the monthly rent compare to the monthly payment if you decide to take this path? Another thing to keep in mind, you need to have some decent reserves to owner finance a property. If for example, the roof starts leaking, the water heater needs to be replaced, or AC breaks down, those expenses need to come out of your pocket. You also need to factor in the type of neighborhood/tenant.

You could also wholesale the property and make a quick buck with very little risk. 

@Daniel Moctezuma I was just thinking about that.  Again I don't even have an address yet so I can't run the numbers properly yet.  I will have to wait and see.  I know the sellers is very motivated though.  

I was considering the wholesale route.  I just need some numbers....  I hope to have some to share soon.  

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