Thoughts Needed-Help!

Okay, I found this house that is FSBO. I went and looked at it tonight and the house is completely remolded and new everything throughout. The woman who has owed for 24 years it is getting married moving in with fiance, and house has been vacant for 3 months she is just listing with an agent. She is asking 142,500 for it-which it was just appraised at. In talking with her she really isn't interested in taking that much less, because of all the remodeling and the house is excellent condition but would consider contract for deed "to the right person" for short term 1 year no longer than 2 year with balloon buy out at the end of the contract.

I have a renter/buyer who I could put into it. He would have to rent for a year or two until his credit is better.

Here's where I need help I have to email her tonight with my offer. I am willing to pay full price, because I could probably make $10,000+ or fianance it for the renter/buyer in two years and make more.

I am not sure how much to put as down payment? Which I would have renter pay as deposit. Thinking 1%?? How much should my monthly payments be? How much interest? How do I figure that out? Taxes are $1400 per year. Insurance would be about $1,200 per year. I am thinking rent would be about $850 + tenant pays elec/gas with deduction for yard and snow maintenance.

I am thinking 100% of payment goes towards buying price...

I need your input please!

Thanks,

hillvalley