Anyone out there ever done a seller carry deal with no down payment and no interest? I was approached by my neighbor about an off market deal. She owns a rental property and we share a lot line. Her husband passed away unfortunately so she’s trying to offload the rental while she can still file jointly.

It’s not a great benefit to own the house, but it does solve some property access issues for us. More importantly, the math seems like a no-brainer. It’s worth 475K, needs $20K in repairs. We agreed on terms of $420K for the purchase price with zero down and zero interest. Payment will be $5K/mo for 7 years. Long term tenant is paying under market rents at $2K/mo. It’s obviously cash flow negative, but the full payment (that my W2 income can cover) would go straight to principal. I figure we would be out of pocket $260K over the next 7 years and have a paid for property worth $600K+. We are structuring the deal with no penalty for pre-payment for all the ‘leverage’ pushers out there ;). Never done a seller carry deal. Anything I’m missing here?

To add a layer, my wife doesn’t want the house. I’ll choose her over an amazing deal every day of the week, but I want to know what the experienced folks out there think of the deal. Bonus points for anyone who knows how to help me convince my wife that it’s a good deal. Or wants to partner up - on the deal, not as a wife…