Need help with creative financing deal

[L. Brown]

I have a friend who wants to sell his home and buy another home out of state. He is open to selling it to me as an off market deal. He wants $375k for it. Based on my numbers, using traditional mortgage, I will breakeven (income=PITI,expenses, cap ex, etc) if I buy at $285k. I got him down to $330k. I spoke to him more and found out he needs $120k proceeds from the sale of his current house to go towards the purchase of his new home.

I am trying to come up with some creative financing to make a deal. One thought I had was to give him $120k cash and then assume the mortgage on the house. The issue is I’m not sure if I can assume the mortgage if I plan to use the house as an investment property (the house is currently his primary residence).

I welcome any other ideas, thoughts and suggestions!