Seller financing to get into a deal

[Stephen Scire]

Hello BP family,

I have an opportunity to get a deal, the property ARV is @ 1.5M ...although the owner did a nice job in updating the units, there is major work that needs to be done to the exterior brick / which I believe scared away some possible buyers. There is a total of @ 150K to bring it up to a nice 4 unit bldg. The potential income is 8800 - 9600 all utilities are dedicated. I truly believe that although the cash flow may not very aggressive, the area is desirable & will be an appreciation play as well. Yet I should be able to do 8-12 % COC

Here's my dilemma... I have much equity in 2 other multis I own but have only @ 100K liquid right now...

What is my approach to the seller regarding seller finance for 3 to 5 years , both not over leveraging myself & trying to save the seller on capital gains NOTE: (he owes @ 250K on the property) & HE IS OUT OF THE GAME, CASHING OUT AND DOES NOT WANT TO OWN INVESTMENT PROPERTY ANY LONGER. 

In those 3 to 5 years Id like to:

Firstly, present him a beneficial deal to both of us 

Buy down my principal in that time

Get necessary repairs done

At the end of 5 years, reappraise & get conventional mortgage, naturally by then have more that 20% equity in the property.

HOW DO I STRUCTURE THIS TO THE SELLER SO IT IS ATTRACTIVE, SAVES ON TAXES & FITS MY GOALS

ALSP< HOW MUCH OF A DOWN PAYMENT DO I GIVE SELLER, CAN PAYMENTS TO SELLER BE INTEREST ONLY IN THE BEGINNING & THEN LATER (year 3 or so) GOING TO 1/2 PRINCIPAL 1/2 INTEREST ECT... 

Thank you all in advance

Steve