Rehab and Stabilize Owner Financed Apartment

[Josiah Mann]

I'm looking at a couple of 30 unit apartments that have been poorly managed and neglected for some years. Right now, they are about 70% occupancy with a poor tenant base. The owner had managed these properties alongside a hundred or more SF properties on his own and unfortunately didn't separate out any of the expenses or income so there isn't a P&L for either, though there is a rent roll.

I know the areas well and know good property managers and contractors that could rehab the properties and I know what to project after rehab and stabilization. The owner is willing to seller finance at least 20%, possibly more.

What might be a good way to structure the deal so we can rehab the property without bleeding money in the meantime?