Creative way to fund my first deal need advice

[Derek Rocco]

Well bigger pockets hasn't let me down yet, so I am hoping someone can help me with this one.

I found what I think is a pretty good deal, but it's just a little bit out of my grasp.

Details:

Asking price for the house is 149k

It is located on the campus of a college in Washington PA. Literally a stones throw from the campus.

It has four floors that are all units. If my plan could be worked out, I would split one of those floors in half, to make 5 units. Here is a current breakdown

( note the property manager who runs the house breaks the payments down like this)

Actually rented

Unit 1 -  1 tenant x 1950 per semester - 2 semester = $3900

Unit 2 - 2 tenants x 2,250 per semester - 2 semester = $9000

Could easily be rented - this is the second floor of the building. It's currently a 4 bedroom, but to get it rented I would wall off one side ( college kids want to live in 1-2 bedrooms now)

Unit 3A 1 tenant x 1950 per semester - 2 semester = $3900

Unit 4B - This side would need a kitchen and bath  this would work out similar, $3900

Basement - Could be turned into a 2 bedroom. It's finished, and has three bedrooms but there is no living room, and the kitchen is crap needs some work. 

This place also comes with a good bit of land, and 4 garages currently being rented.

The property manager who runs it and is also selling it for the owners said seller finance is def on the table. But the terms we worked out just don't work for me. We talked about a purchase price of 130,000 with a down payment of $25k -- this would basically take all my free money and prohibit me from fixing 4B up.

I've thought about offering 15k down, but the seller wants higher payments a month for three years based on a 15yr amortization.

Some other numbers to consider:

Taxes and Insurance = 500 monthly

Property management fee - 170 a month

Vacancy is always a concern but with the location, and shape of the house I don't think it's a terrible concern.

I have about 10k I could easily part with, plus another 8 to 10k I could come up with. But that's really all of my existing surplus of cash, and I don't think it's a good idea to part with everything.

So, any advice would be appreciated. I haven't submitted a formal offer, so I guess the potential exists to lowball the offer, but that probably doesn't help in a seller finance situation.

Thanks for the time!