Looking to purchase the current building i am renting from the owner.

[Logan Vance]

Hello Bigger Pockets Family!

 First of all, I am extremely grateful for this platform and looking forward to some advise. 

I am a Barber currently renting a space in multiple unit building. There are Three units in the whole building. A insurance company occupies the largest side of the building and He is the current owner of the property. There are two units in the middle on the other side one occupied by a salon, and the middle occupied by another barber and myself. (The building is shaped like an L). The Salon and barbershop can be sub-divided by a door between the two, but the door was taken out to keep a open concept between the salon prior to me moving into the location. 

I am sub-Leasing a space in the salon from the salon owner, whom is leasing the whole salon from the insurance company owner. There are 3 current stylists working for the salon owner. There is 1 other barber working for myself in the barbershop. 

The salon owner is looking to retire in a few years and she has no ambition to purchase the building, So the owner has asked me if i was interested in buying the whole building. I have been wanting to expand my shop for some time now and some renovations to the current room i am occupying need to be done prior to adding new barbers.(Sub-partial walls need torn down.(Non-Load barring).  

He has gotten some rough comps from a real estate agent, and its looking like the building would list for around $150k-$170k. The furnaces are working but have not been updated in 20+ years, one A/C unit is being replaced this week, and the other needs to be done at some point, it struggled to keep up in the south facing room last year. Roof is 12 years old, he was looking to refinish the parking lot but just got a quote and it was for 7k more than he did last time so not sure if he is going to to that now. He is willing to deduct money off the cost of the building for the needed repairs and just lower the price for me to do the work. 

 He is going to retire dec 31 of 2026. He would like to sell the building to me considering i am already occupying space and he don't want to sell it to somebody else and they kick him out of the space prior to his retirement. He is wanting me to purchase the building then him pay me rent, and is wanting to pass his business along to his secretary for her to run when he retires.   

There is a lot of cash flow that will come to me immediately after purchase from all the current renters in the building, boosting my income and will be more than enough to cover the mortgage and expenses. 

I currently pay $800 in rent for the space. I know the mortgage payment would not be no more than double that, and i would make near 3k per month in just rent from the current renters(including the owners rent). So the cashflow would cover the cost of the purchase. 

We have discussed Sellers Financing with a 2-3 year balloon, i just don't like all the liability being on me and it not being though a bank and just a contract, if god forbid something happens to be at the end of the balloon ,then my family would be in a pickle they couldn't just sell the building to help with the financial burden, and would have no use for the building if I'm not there working.

My issue is i currently do not have the necessary funds for the down deposit for the purchase.( Roughly 20-25%). 

I have a pregnant fiancé in college  full time, we also have  twin Seven year old little girls at home. So all the finance is on me currently, and i cant drain my saving and sell everything we have to come up with the down payment. There is just so much money to be made from this purchase and i don't want to drag my feet and let the opportunity slide by once someone else realizes the cashflow this place makes, and they buy and and i loose the opportunity.

So i guess I'm looking for options for help with down payment. I understand the bank covering them needing the 20-25% down but the opportunity for cashflow is there and i don't know if there is any other options out there. Would they consider the cash flow? Or are they just going to go by the books no matter the cash flow. 

 Thank you for any help on the matter.