Creative financing question

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Seller owes 120k on a 400k building 

His goal is cash flow for retirement 

His mortgage is 2,200/month

After expenses he’s breaking even due to below market rents...

should I... do a wrap around mortgage pay his 2K mortgage and make an agreement I won’t start paying for his equity until I get rents up?

OR

Take a mortgage out on his remaining 120k mortgage balance so the new mortgage is only like $700/month have him take a second lien position and immediately start a seller financed agreement since he’d technically have it paid off. 

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@Rick Pozos rents can go up an additional 2K/per month. If I take out a mortgage on his remaining 120k the payment will go down from $2,200/month to around $700 increasing cash flow $1500 then I would just have a note (with seller) for his equity