How to finance and structure this deal.

[John Brown]

All, My partner and I are in early in the process of buying a property with multiple, 13, duplexes on it. They are all under 6 years old. The owner wants to minimize the capital gains tax he pays so we want to suggest to him to do a master lease to us for "x" amount of time, and we pay his lease fee and hold the rest of the money in this time we will secure a loan to buy using the money we make as part of the down payment. He will do a cash out refi on the property and we will use our loan to pay off that refi. Here is one of our questions can we use the property in question as part of our down payment since we have it under a master lease.