Buying a multiunit property or not.

[Carlos Gonzalez]

There is a property I want to buy in el paso TX with zip code 79905. The property I'm considering buying is a triplex. Monthly income is: $650, $500, $400. 3000sqft Tenants pay all utilities Taxes are around $4000 a year for the entire property. Monthly maintenance expense is $250 According to the public records the property has an assessed value of $145K. Each year the property appreciates in value around $11K The seller is selling it at $117K with a LP/SQFT $40 When I was working with a realtor seller had decided that the only way to sell the property to a selling would be for a sale price of $99K and 20% DP and no inspection period. I didn't like the option of not having an inspection period I didn't go for it but I did like the price. Days later I looked for more opportunities in a different website and found the same property. This time there was not realtor attached to the property so I would be dealing directly with the owner. I called him yesterday and told him that I was interested in his property, he figured I was the same prospect buyer so I told him the truth. Now he is presenting to me this alternative: 25% downpayment Owner financed for the first year only then I could refinance with my bank of choice. Monthly payment to him with taxes $1200 Sale price is $107K Right off the gate I think this option is a bad deal. I was thinking I could offer him $100K with a conventional loan 20% downpayment financed through my bank. (This is where I need help) I also could negotiate something similar to his offer: A lesser payment to him monthly (how much would be good payment) A much lesser downpayment (how much downpayment could I offer him, the least amount the better, wouldn't we all like that) Then after a year I could refinance the property with my bank. Any feedback and advice is greatly appreciated. Thank you guys.