So, I have been scrutinizing over how to structure a deal that I came across recently and I was hoping the awesome Bigger Pockets community could offer me some insight. I have been analyzing this deal to death and I feel as though I need a fresh outlook to provide suggestions. I have been looking for rental properties in my area for the purpose of AirBNB units. I recently met a landlord who is looking to liquidate the townhouses he owns for health reasons. He has four identical townhouses in the downtown district that he has been AirBNBing out himself very successfully for the last 5 years. I am considering buying all four units if I can afford it. He has indicated through our very initial talks that he would like to sell each one for between $130000- 150000 off the cuff. My research has found across several real estate platforms (Zillow and Redfin) that the estimated value is actually somewhere around $105000-110000. I would add some additional marginal value for him selling the units furnished (which helps me with the AirBNB budget).

I have approximately $60000 to invest as a downpayment (plus some extra for the cost needed to purchase). The seller has indicated that he would be willing to hold papers or I could go the conventional mortgage route. If I go the conventional mortgage route and finance for 30 years I would qualify for the lowest interest rates due to my superior credit. However, my concern is that if I purchase all four as separate entities (which I think is the smartest way to go so I can sell later with no problems), the closing costs of each individual purchase (total of four) is going to be crazy.

If I negotiate seller financing, I am afraid to get into an agreement with any kind of balloon payment (just because it makes me nervous to have it hanging over my head) but I would like to negotiate a lower percentage downpayment than 20% so that I could afford to purchase all four (rather than two) under a warranty deed contract.

This is my first real estate deal and I am looking for advice on possible purchase options that might be more advantageous to me while keeping the seller happy with the results. From his point of view, he is just looking to get out of all the management he was doing himself and be able to spend more of his time on his health and family. He seems very willing to work with me.

Any advice is appreciated! Should I go for it and buy all four with a creative seller financing plan (which is kind of what I really want to do) or go the conventional mortgage route and keep it a bit safer from a cash needed to close perspective? Thanks in advance!!

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