How to structure a partnership with the current owner?

[Kavin Kuykendall]

Hey all,

I've been building a relationship with a seller in my area for a while now. He's personally selling his upper/lower duplex +studio but hasn't had much luck with it so far. Here are some specs:

Estimated ARV: $240,000-$260,000

Purchase price: We're in the process of negotiating but he currently wants at least $240,000

This property is currently under rented and poorly managed. 

I'll attach a copy of the rental calculator analysis for all the numbers.

He currently owes $135,000.

He mentioned today that he would consider partnering with me in order to make the deal work. Allowing him to get some cash out of the deal, plus stay in "the game" while allowing me to get in for less cash. The problem is neither of us knows how to structure something like this. Any ideas? 

Thanks all in advance!