4 plex deal, lease option a good idea?

[Tyler Sample]

Hello all, 

I stumbled upon a 4 plex for sale. The seller I learned (through my ways) is paying a $800 mortgage and all units combined rent is $3,125 and all are in leases to stay put. He's a rehab guy but not a whole lot has been done to the property since he bought it two years ago. Running comps as we speak. He's asking $275K. I think my first issue is he bought it for $118K, made minor improvements, and is asking far too high. Secondly, I do not have 20% cash to put down even if I could get it for $200K due to another wholesale deal I am waiting to close on, which I would have the money in a couple of months. Would a lease option to purchase be a good idea if I can talk him down on price? What should I look out for?