Selling using Owner Financing?

I was talking to a broker today and he told me about something he does with all his houses.

he purchase a house worth $100k (round number) for $80k. He then turn around and sell it using owner financing as follows:

Selling Price: $105k
Down Payment: $10k
Interest for 5 years: 10%
Baloon payment at 6

He said he gets more than his money worth this way and at times, he ends up with the house back and he just resells it and keeps the down payment.

When he presented the numbers, I found it to be very interesting because you get part of the rehab cost out of the property, generate positive cashflow, and one would be making money on the higher interest (assuming your payment is based on %7 rate).

Anyone has any input on such method?