Assistance with evaluating options for $$ on a multi-family deal

[Stacey Carroll]

We've found a great off-market, small multi-family investment opportunity in our desired area (north whatcom county, WA).  Here's the challenge! The owner (nearing his 80's) doesn't want all the cash now (I know - THIS isn't the problem). He wants to carry the paper on $400k. Purchase price is $800k. We have $150k cash - but not what we need and I'm not sure I want to spend all our cash.

So, trying to evaluate all our options, here is what I think our options are:

1) Look into a hard money lender that would be willing to have a lien on the property for the owner's contract. Is this a thing? If so, I'm worried about if I could find a hard money lender that would be interested in such a small investment and how it would affect cash flow because some I've talked to charge 9% interest. Also, do any commercial banks allow loans with partial owners contracts/liens?

2) I am currently self-employed and I could move retirement funds to a self-directed IRA, but not sure this is possible unless the seller is willing to write a non-recourse loan doc with us. Is this a thing - seller non-recourse loan?

3) Find a partner to do the deal with. Selfishly, I don't like this idea because finding and getting this deal was a lot of work and it feels like giving too much away to bring a partner in now. Although some of you may be thinking blah, blah - if you had your own capital, this wouldn't be an issue!

4) My favorite idea (but my husband would probably divorce me): Borrow from our primary residence (which we currently don't have a mortgage on and is valued around $450k. Again, this is the obvious choice to me - but marriage and compromise and all that good stuff!

5) Other options - what am I missing?

Thanks in advance for any and all feedback!

Stacey