Strategy for Multi Purchase using Lease/Purchase

[Luis Rivera]

Looking to purchase a 4 unit multi and would appreciate feedback on some strategies for moving forward. Although the sales sheet info says no owner financing, I would like to offer to buy it as a lease/purchase. I can apply up to 25% as a down payment. I would like to offer 6mo to a year to close on the sale. This would allow me to stabilize revenues and expenses and apply for a loan for the balance. I understand that the owner has family living in two of the units and they would be moving out if the place is sold. Also would give time for the leases on the other two units to expire and renegotiate. Rent in the units has room for increase if re-rented at comparable market rates. Not putting any numbers into this because I have not spoken to the owner yet and don't have solid numbers to share. I am most interested in a strategy(s) with which I can convince the owner to sell (if the numbers work out) as a lease/purchase. Also, I cannot occupy any of the units.

1. How can I make this attractive to the owner as a lease/purchase?

2. I am assuming all rents and expenses will be mine during the lease period. Unless I can get him to finance a portion of the balance during this period, what monies, if any, would be due to the owner while I am leasing. Can I use the amount of downpayment to leverage this?

3. Ideal would be for him to owner finance. What cost savings can I share that would entice him to consider.

4. Will banks give me credit for my downpayment to the owner against the purchase price or will they be looking for for an additional down against the loan?

Appreciate your thoughts as to the good, bad and ugly of pursuing this type purchase.