Creative Deal with VA Loan-Subject-To looking for suggestions!

[Sandra McEwan]

Hello, I am looking for some insight and help with this creative deal.  I am very new to CF and have been working with this other investor who is very green on this as well.  Here goes:

My deal is a triplex with a potential Subject-To, Mirror-wrap or anything else creative I can do.

VA loan 2.6% 28 years left

341k left on loan

Current property value 400k

mortgage is $2046 / cash flow is about ~200/month with current LTR all 3 units occupied after reserves.

Owner is going overseas at the end of December and either needs to sell, do creative deal or get a property manager. He wants to get into the building space in 2 years instead of buy and hold small multifamily. In creative deal, Seller agrees, I will keep the 2.6% rate for the life of the loan.

Rents together are: 2945k/month for LTR (included 1 vacant unit that will be rented soon)

Market rents after minor reno: 3400 for LTR below market

I can mid-term rent these as well: 4800 for MTR/STR hybrid

Reno: 5-10k

Seller wants 60k (his perceived equity) in 2years, nothing down and no monthly payment.

Seller wants a chunk in 2 years b/c he wants to start a new venture. 5 years doesn't interest him and I am not thrilled with monthly payments b/c there will be much transition. He doesn't really care for monthly payments anyway for equity. One unit is vacant and need to put in W/d hook up and get tenant and then potentially furnish some units for MTR next year. I understand his equity is actually much less if he were to sell on the market.

He wants more than 20k in 2 years. I could get an equity partner at some point.  We are looking at doing this subject to but have not agreed on the price (equity piece).

Any help is appreciated and curious what your thoughts are.  Thank you!!