Structuring a apartment deal with partial bank and seller finance

[Arick W.]

So I have the option to buy an apartment complex, which is a big step for me; however, I have been having a very difficult time trying to figure out a workable agreement that uses the sellers money as my down payment and the remainder of the note with a bank.  I am open to any input on this deal.  I have a lender who lends on all my sf homes, who is awesome and is on BP as well, and he used to specialize in this area (apartment acquisitions) and he has given his input and I trust his advice.  I do think this is still a good deal, though not at the sellers current price.  Hes pretty stuck on his price and im pretty stuck on not paying his price.  How do we make this deal happen and a win-win for both parties.  He would be using, almost exclusively, his money to finance my down payment with a bank.  Below is all the info for the complex:

32 unit complex 

C Class 

Surrounded by apartment complexes and rental communities

All units are under market rent by at least $100 (some as much as $500!)

All bills paid except electric; water and gas is master metered and financially no gain to individually meter but full intention to bill back through RUBS.

One expense is cable is provided, would be cancelled in month 2 allowing for an additional $1,200

90% occupancy (current not avg)

Heres all the numbers:

Asking- 1,200,000 

CAP- 11% per seller

Gross rents @ 100%= $17,375/ mo

Current avg rents- 14,707/mo

Current expense- Utilities=3,500/ mo

Repairs/Maintenance= 1,500/mo

PM= $0 (self managed) Would be same for me initially

Taxes= 13,000/yr

Insurance= he pays 14k/yr, my quotes have came back at only 6k/yr

Heres what I know I can change within the next 3 years:

Eliminate cable- $14,400/year savings

Insurance rate- $8000/yr savings

R/M- increase expense by $18,000/yr for first 3 years while I rehab units during turnover

Gross rents- Bring to market over 3 years for total gross rents of $294,000/yr at 100%

gradual bill back of utilities over 3 years or unit turnover- would be included in the market rent because all apartments in this area pay for utilities but have higher rents.