Looking for advice on how to structure a deal

[Jeff Brace]

I'm looking for some advice on how I might be able to structure a deal for a duplex.

I am brand new to real estate investing.  I'm talking to a guy who wants to sell me a duplex 

This is not a listed property. He wants 120K. Both units are currently rented. They are a 3BR/2Bath and 3BR/1bath. They rent for $650 and $550. This is a Class C property.  There is room for improvement and rents can be raised some.  He bought the property a year ago for around 75K and said he put 15K into it.

The owner said he doesn't have monthly financials to share with me.   

This property also comes with the adjacent empty lots on main street, which will present nice opportunities in the future.

I'm looking for financing options.

I wanted to do a contract for deed.   I offered him 15K up front, $800 per month for 60 months and a balloon payment of 57K at the end of the 60 months.

He said his lender would not allow that. He owes $71,700 to a local credit union.

I'm trying to avoid conventional loans where I have to put 25% down.   I'm trying to keep as much cash on hand as possible for other deals.   

Any advice you could offer would be great.

Thanks for your help!