23-Unit Building with Negative Cash flow

[Samson Kay]

What would you do Bigger Pockets Nation?

I came across a 23 Unit Apartment Complex for sale in my Search for motivated apartment building owners and after getting some detailed expenses from the seller I realized that the owner isn't making enough on the property to cover his own debt service. Hes in the red almost everymonth for the past year.

He has mentioned that he is motivated and would entertain purchase money mortgage but I am really more interested in getting this as a master lease with option. The rents are way below market with plenty of room for improvement on the expense side as well.

Do you think I would be able to offer a 36 Master Lease with Option at the current NOI even though its not enough to cover the current debt service? Or should I offer, a little more over the monthly debt service so he's making 1000 bucks extra just to sweeten the deal?