How would you negotiate this potential deal?

[Richard G.]

Hi all, I recently started investing in multi family properties and came across one that I think is a potential deal, but the seller is stuck on his asking price while the property is worth about 5-10k less...  He wants to sell and is asking for the value of the current mortgage on the property, I.e. if he sells for less, he will be under water.  How would an experienced real estate investor negotiate with this seller?  Or would you walk away?

I’m offering 10k less than he wants.  And the property would be ready to rent with minimal rehab needed.  Would it be worth going in with negative equity in this case if the cash flow supports it in the long term?  Thanks for any insights.