Creative Financing on Multiple Duplexes at Once

[Larry H.]

I came across a deal on 3 duplexes owned by the same person.  They are 3/2 and rent for $700/month, so $1400 per duplex.  The list price is $80k, but they need work so I would try to get them for less.

I have 3 mortgages already, 2 in the same neighborhood as the duplexes, so I can't do conventional because Fannie Mae doesn't allow more than 2 loans in the same neighborhood. I could probably get the cash for the down payment out of a HELOC, but otherwise I do not have the cash on hand for the down payment.

I am considering calling the agent and asking about seller financing.  I have zero experience with this so I'm trying to figure out how I would structure it prior to calling and asking for it.

Another option I am considering is asking an individual to loan me cash for the total purchase price.  I was thinking about offering a 7% return on the total investment and making monthly payments to him.

My third, and least desirable option would be to seek out a commercial loan, but again I don't have the cash on hand so I would have to take out a HELOC for the down payment.

I would really want to be into all three for around $180k.  Cash flow on that with a commercial loan at 5% for 20 years with 25% down would be around $600, so it's a deal I definitely want to do.

Here is what I'm estimating.  The all of the expenses are based on actual expenses we've incurred on our 2 four plexes in the same neighborhood.  Any advice would be greatly appreciated.