Creative financing ideas needed for 25 unit multifamily

[Ian Whiteman]

I am in the process of purchasing a 25 unit multifamily building. It is not a true multifamily as some units are traditional 1 bedrooms but some are more like hostel or hotel rooms. I already own another property that is very similar to this and the new property fits my needs perfectly. The problem is the property is currently for sale for 3 million. Personally, I think it may be undervalued, but I do not have an appraised value. It also needs a serious rehab as it has been neglected. Miraculously it still somehow cash flows great. The owner will seller finance but wants 1 million down. This leaves me about 700k short. 

I have several options.

1.Private lenders- The problem here is they all want to be long-term partners in the business. Paying the interest on the money does not bother me but I don't really want a long-term equity partner after the loan is paid. Does anyone have experience with some type of guaranteed buyout structure? 

2. Hard money- Ive never needed hard money before so it is a bit foreign. If we do seller financing the owner wants first position on the loan. Does this create a conflict with hard money lenders?

3. Negotiate the down payment- No guess if the owner would go for this. He wants to retire and I don't know if he could be flexible. In a perfect world, this would work but he seems firm on 1 million. 

Im all ears for solutions here. Just trying to find a way to raise 700k and not end up with a long-term partner if I can avoid it.