multi unit rehab w/owner finance

[Chad J Muse]

looking at an 8 unit(2/1) and a duplex on same property with room and ability to build additional apartments. 

Owner willing to owner finance for a year. Currently needs a lot of work. Class c at best. only 4 units occupied. My plan is to bring up to class b. I want to offer 325-350k(What he paid in 2004) he just wants out. I would pay all closing and  paying him what he is bringing in on rent right now. About $2600/month, so he doesn't lose any cash flow. Then pay him full price in a year after refi with construction loan. Property can rent for $1000/unit when rehabbed. It needs about $200,000 in rehab pretty safe to say. Maybe more. Town wants me to do it and bring in better tenants. Still doing due diligence on the building of new units. I can bring a couple units up to par pretty quick just to add some cash flow. I don't want to fill all the units yet because I want to be pretty close to empty when rehabbing, so I can bring in totally new upgraded tenants. It has a pretty bad reputation right now.  What do you think?