Seller financing deal with negative cashflow in California

[Shankar Sridhar]

Hi, I have been talking to a seller who has hinted about selling this property via owner financing because he wants to avoid capital gains as much and does not work to further handle this property. It's a 4-unit property(4*2/1) with under market rents and needs lot of work acc.to Seller. 

The property with current rents might give about 5600. 

Seller wants about 4500$ in monthly payments. Even if I structure it somehow to initially pay him only 2000$ a month(until rehab), adding property taxes, insurance and reserves(25%), I am not cash flowing in current state.

On top of it, in seller's words, it needs lot of rehab, which I don't have lot of experience nor money. Plus he needs about 20% in down.

Is this a good deal? Or am I missing something to make it work?
Of course , bringing in a partner with some more money and expertise would help, but I don't have anyone currently.

[Matt Devincenzo]

@Shankar Sridhar the old adage about contractors rings true here...fast, cheap and good you can only pick two....

The seller needs a reality check. Why would I pay market rate, with a market rate DP, and tackle all the needed repairs so he can 1) keep collecting the same income and 2) save on his taxes? Where is the upside for me? 

That should literally be your approach with him. Make him explain what is in it for you, and if he can't or only has reasons that don't actually result in money in your pocket then walk away and follow up every couple months until he is motivated.