Partial Seller Financing Advice needed on a Deal

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Hi Everyone - need some advice on a deal here - how do we best go about making this situation work?

We have a 5 unit commercial property that we put an offer on, and the seller is considering a partial seller finance on the deal to get his full offer price of $270k.  The seller still has a $175k mortgage on the property that he wants to pay off by having us get a mortgage for $175k at least, but is potentially willing to carry the balance, offering seller financing on the remaining ($95k) or 35% of the value.

This is our first seller financing deal and we don’t want to screw it up. Anyone know how we can best go about structuring this deal to make it work for everyone and have us put as little money down as possible?  Is working out a deal like this even possible?

Will a commercial lender even lend on a deal like this?  Anyone know of a WA lender that might be willing to work with us on this?

Any other creative solutions that we are not thinking of that we can bring to the seller?

I Appreciate all the help and feedback.

This is a great problem to have. I think you need to be straight with the bank and ask them what is the minimum equity/skin you need to fork out and show them some knowledge of your plan in the next 1-3 years. I would start with 20% down and have the seller carry back 15%. Show the bank based on those numbers how you will still cash flow and have a solid debt coverage ratio. 

If you have a relationship with the bank go ahead and try 10% skin but will you still cash flow is the question?