Have opportunity to purchase CA beach adjacent SFR, need advice

[Rob Pattison]

I have the opportunity to buy a distressed property 3 blocks from the beach in the Torrance area.    The owner has 2 weeks before the home is auctioned off.  Complicating the matters are 3 tenants, non of them paying rent.  One of the tenants appears mentally ill and another has anger issues.   

The owner wants $1.4 million, I'm thinking closer to $900k, on account there is deferred maintenance and then having to get rid of all 3 tenants. I would plan to live in the house, rent out what appears to be an ADU unit in the backyard.

He says he "needs" cash within 2 weeks.   I'd plan to offer him a cash offer of $900k, or $100k cash down and he take back a note for $1.3k.   

I'm looking for suggestions, possibly even an equity partner in the deal, and/or a down payment help funding source.