Urgent insight needed!!

[Waleed Hamdan]

Hey guys,  

Urgent situation need advice!! I have a unique scenario and was hoping to get your insight. I’m hoping this is a situation I can benefit from with a bit of creativity. I’m currently a tenant in a duplex (Bay Area). We just got notice that the landlord is selling the duplex. I wrote him suggesting that we have a conversation about a way I can purchase the duplex prior to listing. I make decent income, but that’s relative (especially in the Bay Area). My question is, what are some scenarios I can present to him that will make it possible for both of us to benefit, making this transaction possible. Here is some information you might want to know. See below:

1. 1-Our rent is $3,500 (should be closer to $3,800) and the second unit is $4,700 (should be 5k)
2. 2-I could come up with 300k down and qualify for 1m loan (prob more considering rental income From second unit
3. 3-I am comfortable paying 5k/month
4. 4-Duplex will be listed for 2.48m for a 1031 exchange 
5. 5-Our neighbor says their side need a lot of work, upwards of 50k (original carpets, stoves, etc. this number is complete estimate)
6. 6-His family is heavy in real estate investment. 
   
7. 6-We’re a family of four (two toddlers) and can move Into the larger unit, but will tough it out and stay in the smaller one to benefit from the higher rental income

They’re coming to take pictures tomorrow so I imagine the landlord will Call me today or tomorrow to discuss. Any insight on a strategy would be deeply appreciated! Please let me know if there is any other information needed to weed out a deal!

Thanks,

Waleed