100% owner financing at 0% interest... is it possible??

[Justin C.]

Hello BP!

There are (2) 4-unit buildings right in the middle of where I like to invest that are part of an estate sale.  This estate has liquidated several other larger multifamily buildings in places outside of my area and these are the last 2.  They are asking way too much money at $480k.  My initial offer was rejected, so after 2 weeks of trying to figure out a better approach, I simply came up with this:

$500,000

100% owner financing

0% interest, 30yr term

I pay all closing costs

Sellers cut buyer a check for $20k at closing

They are open to this and at these numbers, the cashflow is great at approx. $160 per door. However, they are saying the “the estate most likely wont accept this.”  I haven't responded, so i’m hoping to try and figure out a way to simplify this offer.  I'm aware of imputed interest, however that is taxed to the seller and not the borrower.

Any idea why the estate would care?  

Thank you very much in advance!

As a side note, I will also will have to split the sales price somehow as I don’t want the tax basis to jump $100k on each building.