Creative Finance Deal in Cleveland, OH ($49.9k Purchase) Structuring Advice Needed!

Hey BiggerPockets Community!

I've been actively wholesaling and analyzing off-market deals in the Greater Cleveland area, and I'm currently working on executing a Creative Finance (Seller Financing) deal on a single-family property in Cleveland, OH (44110).

Quick intro about myself: I operate as an off-market wholesaler and store operations manager, focusing on deal acquisition and creative structuring for real estate investors across Ohio and Texas markets.

I would love to get feedback from experienced creative finance investors on how to best structure and execute this deal.

Updated Property & Deal Overview:

• Location: Clearaire Rd, Cleveland, OH 44110

• Property Specs: Single-Family Home | 4 Beds / 1 Bath | 1,162 Sq Ft | Built 1924

• Purchase Asking Price: $49,900

• Projected ARV: $122,000

• Estimated Rehab: $50,000 (Requires full MEP – Mechanical, Electrical, Plumbing, plus roof, exterior clean-up, and detached garage work)

• City Status: 6-month city extension already granted for the buyer to pull permits and issue the Certificate of Occupancy (CO).

Seller's Direct Creative Terms:

• Down Payment: Highly flexible ("Skin in the game" required; seller has no fixed minimum, targeting $5k–$10k).

• Monthly Payments during Rehab: $0/month payment deferral granted for 6 months (or for the duration of the project) so there is zero out-of-pocket cash flow pressure during rehab.

• Exit / Balloon Terms: Open to a 12-month balloon note or a 10–15 year amortization schedule. Target is a 12-month note to complete the rehab and refinance.

• Seller's Key Requirement: The seller is primarily focused on the operator's liquidity and experience—requiring Proof of Funds (POF for $50k rehab + down payment) and brief experience with pulling permits.

Where I Need Your Advice:

1. Best Exit Strategy: Given the 6-month city extension and $50k rehab scope, would you recommend completing the rehab and refinancing via a DSCR Cash-Out Refinance, holding as a Section 8 Rental, or doing a Wholetail / Flip?

2. Assignment & Entry Fee: If assigning this contract to an end-buyer/investor, what is the best way to structure the assignment fee while keeping the total buyer entry fee (down payment + assignment fee) low enough to remain attractive?

3. Seller Pitch / Terms Refinement: The seller recommended a refinance payoff at 12 months. What interest rate or flat fee structure works best to pitch to the seller when $50k of rehab risk is being taken on by the buyer?

Appreciate any insights, feedback, or critiques from the BP community. Looking forward to connecting with active Cleveland investors!