12 unit Apt. Purchase - Financing options - Need Advice Please

[Rob Lalumendre]

Hi Everyone, I have an opportunity to purchase what looks like a really good deal on a 12 unit apartment building and would like some advice on the best way to purchase it. I am planning on a long term hold for this property. I have $15,000 of my own money to put into the deal.

Here's the details of the property:

11 apartment units, 1 commercial unit - 100% occupancy (many long term)

Building is older, but in excellent condition, it is currently owned by an individual in the construction industry and he has rehabbed the entire building, inside and out.

Rents are currently 15-20% below market rates.

Gross Income = $75,600

Expenses = $19,100 

NOI = $56,500

Asking Price - $457,000

Seller owes approximately $200,000, wants to pocket $100,000 and would consider financing the remaining balance of about $150,000.

Which approach would make more sense or even work?

1. Finance $285k conventionally, put in my $15k and seller finance the remaining $150k. 

2. Find private money for a $135k down payment, conventional finance the remaining $315,000.

3. Find a private money partnership to finance the entire deal. 

4. Other creative ideas?

I currently own one 4-plex so my experience is limited, but this property cash flows great and will cash flow even better after the rents are adjusted, so I want to figure out a way to make this happen. 

I would appreciate advice and ideas on how to make this deal work.

Thank you very much, Rob