Looking at my first Mutli Family ? Called the agent myself - HELP

[Kuriakos Mellos]

HI BP!

I took the advice from one of the most recent podcasts and found a building that had been on the market for a while - and flat out called the agent to learn more about the property. (More so as an exercise, but I was genuinly interested in potentially moving into one of the units as a primary - using an FHA loan to do so - and renting out the other one to help cover some of the costs)

The unit is a two flat, and been on the market for over 100 days - a long time for this specific suburb of Chicago. (where two and three flats go fast).  It is very dated, like super original from the 1960s, but seems to be well kept and in a good area - between two downtown districts.   It prompted me to want to ask they questions WHY and what was going on.

To my surprise, he dove right in. The owners were more concerned about keeping their current tenants in place and HAPPY as they had been there for years and both have leases until June 2021. (There is no mention on the MLS that the unit is currently rented.) I found out what their current rents were, which would BARELY cover the costs of the P+I+T and Mortgage Insurance at the Selling Price that the building is currently at (as I was looking to put lower money down.). A quick history reference checking on rents found that the units were very below market level, with each having at least an upswing potential of between $400 and $500 each with some work. At that point - the deal becomes much more eye appealing. The agent further told me that three kids owned the building, seems their parents had it and have passed it on - and have been 'managing it' for the last 15 years. It seems that they are the original owners and I am assuming it is paid off.

If I can get them to agree on a lower price, that would let me purchase this flat out as an investment property - what are some options to finance it? How much would lenders be looking to put down? Would seller financing even be an option here?  Any help would be greatly appreciated!

K-Man