How to structure seller financing on an 8 unit

[Kujtim Beganaj]

I have an opportunity to purchase an off market 8 unit deal. I have spoken to two banks and they will only do 25% down and 1.35 DSCR (Debt Service Coverage Ratio). The bank will only lend up to $390k. The asking price is $660k and at 25%, I do not have near $165k to put down. I will continue to look at other banks.

What I do have is $45k cash, and a detached single family home rental property currently valued ~$215k with a loan balance of $126k. I am considering refinancing it to pull the cash out.

My main question is, how can I 1) approach the seller to do seller financing and 2) how can I negotiate and structure it to be fair to both parties step by step?

See below for the figures.

Asking price: $660k

Gross income: $74,412

Expenses: $27,110

NOI: $47,302

Cap rate: 7%

Any insight would be greatly appreciated!