What is the best way to purchase multiple properties from a family member?

[Ben Connors]

Good morning BP community,

My father owns 7 units and 1 commercial property all but one of which has the potential to cash flow (some of the units are currently occupied by family at little or no rent). He is nearing retirement age and will likely want to either sell the properties or establish an arrangement with my wife and I to manage or own the properties while paying him monthly either by way of a mortgage or % of rental income.

Assuming a few things:

We cannot afford to purchase all the properties outright.

We can’t or won’t evict family members currently occupying 2 of the units

My father has no mortgage on all but 2 of the units and the commercial property.

Every unit is currently being rented below the market rate in the area.

What is the best way to transfer these properties to my wife and I while still allowing both us and my father to generate a monthly income from the properties?

My initial thought is to offer to purchase 1 unit to start and do a seller financed mortgage.Then pick up other properties over time as our finances allow.

Thanks for any help and advice you can provide