Purchase the home with the condition that the tenants have vacated.

This allows you to use all of the tax and deferred depreciation recapture to purchase the larger MF propertyA consolidation exchange is where you sell multiple investment properties to purchase a larger and nicer investment property, but you also get the benefit of using all of the tax you would have had to pay to your advantage.

I wouldnt give any consideration to what the seller needs in order to break even in determining the purchase price.

However, due to keep purchasing real estate, my DTI is high and close to 50%.

But unless you get a value-add property, purchasing real estate really doesn't make much sense in this environment?

I saw how that proposal is basically her giving me a 0% loan, but at the same time I believe that structure will avoid her taking a large loss (approximately 30k if she accepts a 300k offer).I do not know why she doesnt get a PM, I only share the facts of when she purchased it, the purchase price, and the reasoning she shared with my realtor as to why she is selling after such a short time period.

Quote from @William Dorrough: I currently either purchase and value add large scale multifamily properties or develop, and build ground up my issue with scaling is we have done this without brining in investors i have a great deal flow with a good track record im really looking to do more i have the capacity but have the need for more capital in one way or another  Scaling without investors can be tough, especially in multifamily.

I had a friend purchase a Vacation home financed with RBC last year. 

My first multifamily purchase was my 34th acquisition and my first multifamily syndication was my 103rd acquisition (and wasn't my second multifamily purchase, either).

Purchase price: $55,000 Fix and Flip Purchase.