Met with seller regarding wrap around mortgage

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Today I met with a seller of a 3 unit regarding selling his property.

The property is currently valued at 400k.

He owes 150k.

Equity 250k

PITI around $2,200/month

Expenses around $1,300/month

His current gross income is $3,650/month which is around 2k LESS than he could be getting per month.

He is only breaking EVEN on this property each month.

He is getting ready to retire and would like a steady income with some money from a down payment.

Being that this property is only breaking even due to his low rents what are my options? Would a wrap around even be worth it? I wouldn't create the second note for his equity until I raised his rents but even then I would be almost splitting that new cash flow with him whereas if I purchased conventionally I'd be out a 20% down payment but I would be getting all the cash flow. 

His biggest goal is avoiding paying capital gains all at once, Appreciation recapture, and steady income.

I'm not sure what the best route is and he is open to selling me it conventionally. I'm a realtor so I could save him on commissions.

Thoughts?