Creative Owner Financing Help .. For 2 Duplexes

[Kristin Whitfield]

I have a potential purchase for an investment property and have a few questions about creative owner financing.

A few details on the property:

It is a bundle of 2 duplexes. Currently, 3 of the units are rented and one is vacant/currently undergoing renovation (approximately $7000 worth of work remaining). Two of the tenants refuse to let the current property manager in, so I assume there will be work needed to these units as well. The roof is really old and definitely needs work if not replacing. The owner is selling the property as is. Rents are currently $800/unit.

The owner received the property as an inheritance. He is open to owner financing with the following conditions: 15,000 down (about 5.5% down), 5-year balloon, 6% interest rate. We are both using realtors.

I'd like to make a slightly different offer making use of owner financing. Here are my questions:

1. Any ideas to help cover the rehab I know I will need to do, as well as the potential issues in 2 of the occupied units?

2. Does anyone have experience with offers that have a 1 or 2-year moratorium on interested payment, basically principle only?

3.  Any suggestions on a "middleman" to take of collecting the payments, and keeping records? 

I'm sure I am forgetting some things. Any suggestions for making use of his willingness to use owner financing with a few creative options for me are welcome!

I would love some help and advice 

Thanks.