Lease Option or Seller Financing

[Tyrus Shivers]

I posted this previously. I am hoping the get a wider distro with the name change.

I need a little help on negotiating a deal. There is a duplex property listed for 124K. I asked several questions to the seller and received the following answers to my initial list of questions below:

Questions:
1. I would like to confirm if it is properly zoned for multifamily.
2. If It says that it is fully leased, how long are the leases signed for and the current rent for each unit.
3. Are there separate meters for utilities?
4. Who pays the utilities?
5. How old is the roof?
6. How old is the furnace or ac unit if any.
7. If it says updated in the listing, with what?
8. Are there any damages (forthcoming). I would of course have my own contractor and inspector go through.
9. Is there a property management agency in use?
10. How long have the current tenants been in place?
11. Is the seller willing to do seller financing?
12. Has there been any major replacements, such as stoves, hot water heaters, etc?
13. Are there any current maintenance issues?
14. Will the seller remedy any current issues or is the property as is?
15. Why is the seller looking to sell?
16. What are the current property taxes?
The property is currently rented and is never vacant for more than a couple of weeks.

Answers:
1. Tax records show commercial.
2. Carriage Brook side rents for $690.00 Lease signed 2/2/2009. Williamsburg rents $775. leased 12/1/2012
3. separate utilities
4. utilities paid by tenant
5. unsure (I asked how old the roof was)
6. both have been partially or totally replaced in the last year (HVAC system)
7. hot water heater dishwasher (new replacements)
8. none known (serious issues)
9. I manage the property myself. Aronov handled it when first purchased.
10. Feb. 2, 2009 and Dec. 1, 2012 (Leases signed)
11.I am the seller.The pay off is around $96,000. I would be open for suggestions on financing.
12. heating cooling wiring hot water heater replaced. Anything broken is fixed through AHS.
13. Waiting on maintenance guy to replace 4 inches of rotten wood at bottom of exterior window.
14. I will take care the rotten wood. Unaware of any other health and hazard.
15. I want to sell at least in the next two years to buy a live aboard boat. FUN TIMES:)
16. Property tax for 2012 - $1019.81

My question is, since the seller is open to financing suggestions. I wanted to attempt owner financing. How would I structure the deal? Would I take over current mortgage payments? I did ask for the current mortgage and interest rate as well as the FMV (from real estate agent working with me). Are there other questions I need to know?

Would a lease option be better? My strategy would be to lease it to the already in place tenants, but I want to HOLD it in my portfolio.

Thanks!