Best way to structure owner financing w/my Father for 54+ unit rental business

[Philip M.]

Hi there, I want to start by thanking anyone who can weigh in here.  My father is 68 and looking to retire from managing and owning a 54 unit rental business in our town.  He owns all of the properties free and clear, with no more mortgages.  Discussions have led to the concept of my sister (35) and myself (37) taking over the business.  My father is not interested in keeping the properties in his name and simply having us manage them, but is open to the concept of us owner financing them from him with a long term, friendly agreement.  He simply wants to be 100% done.

Given the above mentioned scenario, I am wondering what the best possible situation would be to make this happen, while possibly still maintaining the option to pull out equity for capital improvement projects with a bank.  Concepts I'm looking into are a friendly loan, and/or gift of equity, that still might allow for additional re-financing.  My father would be willing to help us out in basically any way that he could, in exchange for modest monthly payments going forward, and is content limiting his capital gains exposure with the owner financing.  As an aside, he has a property in a neighboring town that he will sell for the lump sum.

I know there are better options (ie. him keeping the property in his name, refinancing, us managing, etc.) but the above scenario is all that we are looking to explore at this point.  Any and all help is appreciated - thank you!

Phil