Help with a Seller Finance Deal

[Susan Oram]

Hi guys, 

I need your help. I am looking to work on my first seller financing deal. I am still new in the REI game, so any and all help is appreciated. I live out of state and would have to hire local property management, which I have in place from another local purchase.

Here are the details of the property:

The property asking price is $45,000 and the "zillow estimate" (i know this isn't accurate, but give me a ballpark) has the houses in the area in the mid 40's to 50k range.  The property is located in Syracuse, NY.

The seller is offering the following terms:

Minimum $10K Down, Amortized over 5 years, balloon payment at 12 months, 5% interest rate, $500 monthly payment. That's a rough estimate.

Is the balloon payment due at the end of those amortized 5 years or at 12 months?  Or is the down payment supposed to be getting amortized?

My thoughts: it's paying retail for a property no room to force the appreciation at this point.  The rents are 750 for a 3 bedroom and 550 for a 1 bedroom.  It appears as though rents could be increased some to a closer market average.  

Thanks for any help, I truly appreciate it!