Creative financing for triplex from my parents in Texas

[Stephen Burke]

My parents own a triplex here in Texas worth about 120k, it needs some capex and rent hikes.  Conservatively, rent with little improvements and repairs will be 2200$ in this market and higher with upgrades. I am in the DFW market where rents have been rising 5-10% a year, so I like this property.

They currently owe about 80k on a mortgage.  They have no interest in spending money on the property and don't enjoy managing it.  The plan would be to make improvements, and refinance it within 2 years to get out of that situation, and (if equity allows) pull capex/upgrade money out of it.

I am unsure of the best way to go about a seller financing scenario with a mortgage currently on it.  I also know rules vary depending on state.

How would you structure this deal? 

Thanks ahead of time!