What do I offer on this?

[Josiah Swartz]

The seller is open to financing my purchase, which is what I'd like to do if only to avoid a monthly PMI payment (~$140). There's always more to be made in seller financing from what I understand. The unit is in a semi-decent part of Kalamazoo Michigan.

It's been converted from a SFH to a 4-unit and is listed at around $120k. Here's some other numbers from 2012 (2013 was similar):

Gross Rental Income: $23220

Expenses: $12760

1. Water/Sewer--$560
2. Utilities--$6500 (all paid by owner)
3. Insurance--$2000
4. Trash--$300
5. Taxes--$3400

Leaves an NOI of $10460. Add in vacancy and management at 10% each and it's still cash flowing around $150/door/month, right? Despite the age of the house (1920 I believe), this guy had fixed it up very well. Roof, furnace, and water heater were all 5 years old or newer. He was more tired of managing the property than anything else. No problems with tenants, just far away.

How would you structure a seller-financed deal? Our other option is an FHA loan.