Duplex: Long term tenant and seller finance

[Taylor Knott]

Good afternoon BP I found a Duplex deal for a long term rental. On one lot are two units a 4-2 and 2-1. It comes in at just under 12% COC return.

List Price: $319k 

Total sqft: 3000

Total rent: $2000(4-2), $1400(2-1) may be a little higher depending on condition

Points by lender:  .75

Rate: 3.9% (Not locked in yet)

Closing Costs: $4000

Rehab: $5000(one unit hasn't been updated and the other has)

I am seeing the house tomorrow. I asked my realtor how I could be best prepared and to make his job easy. I had been thinking of questions like: Why is the seller selling? Why has rent been below market price? When were units last updated? And last major repairs.

My realtor relayed to me that the seller is leaving the country and is willing to carry the loan, rents were low with long term tenants, one tenant could still remain but could move out as part of closing. 

With that info now I have options for a conventional loan or seller finance and to remove the long term tenant to raise rent to market price.

Obviously I need to see the units tomorrow to fully know rehab but the seller finance seems like a great option to get creative with financing.

What would you do and why?