Should I do a Master Lease Option on this deal?

[Kevin Greer]

I am looking to do a master lease option on a 6 unit in Chicago and I wanted to run the scenario by you and get your opinion.

It is a 6 unit owned by a 90 year old woman who lives in one of the units. Two of the units are being occupied by her family members (Daughter and Son) who do not pay rent. Three of the units are occupied with tenants that pay rent (approx. $2,600 a month) The units need to be renovated. She owes the bank approximately $145,000 and the value is approximately $250,000 "as is" and after renovations easily $350,000. The building is in a great rental area. My thought is either do a master  lease option to buy and then find an investor to buy it and add a $10,000 lease option fee on top. Or do the lease option and find a private investor to fund me the pay off for the mortgage, give the owner and her family some cash to move out and some cash to at least renovate three of the units and then after 12 months refinance and pay off the investor (I should have the building fully rented within the year and have my credit together). I greatly appreciate any feedback that you can provide.

Thank You,

Kevin Greer