If you are able to put say 20%-30% down, and pay him 5-8% Interest, that could be a much stronger and persuasive offer, especially since he is "tied" up. 

While the cash flow might be the same NOW, I think the four-plex can have stronger appreciation long-term and can yield a stronger cash-flow down the line. 

I am a stronger believer in the wealth accumulation from buying a home in the Bay Area.

Selling now means you could miss out on potential future gains.Market conditions: If the market is currently down, you might not get as much for the property as you would in a stronger market.Option 2: Get a Loan to Fix the BasementPros:Increase property value: Renovating the basement can add significant value to your property, both in terms of rental income and resale value.Higher rental income: With the basement fixed, you can charge market value rent, which could help cover the mortgage, property taxes, and the cost of the loan, with the profit potential.Tax deductions: The cost of renovations can often be deducted from your taxes, either through depreciation or as an immediate expense, depending on the nature of the renovation.Cons:Additional debt: Taking out a loan adds another layer of financial obligation and risk, especially if the increased rent doesn't cover the loan payments.Renovation risks: Renovations can sometimes uncover more issues that need fixing, leading to cost overruns and delays.Market risks: There's no guarantee that the market rent will remain high or that you will find tenants willing to pay the increased rent.Additional Considerations:Current Market Analysis: Understanding the current real estate market in your area is crucial.

We’d rather raise more capital albeit at lower initial returns but in a much safer stronger foundational structure.

Most begin with smaller or single units to gain experience, but if you have the capital you can jump into the deep end, you can hire management.Financing will be commercial and with that borrowers will be required to show the ability to manage their business venture, the lack of knowledge and experience usually means the borrower will need to show stronger financial abilities to compensate for their newness. 

This will give you only a stronger position when you decide to invest.

I've stepped up my aggressiveness, with a certain number of places to view every week and a stronger and more confident speech for the landlords.

Agreed on the personal guaranty - the lease and the value of the property (as an investment) becomes much stronger with it.  

The bank will be after the equity and is less willing to work with the person on ways to keep them in the property.Seems like backwards thinking to me since less leverage = stronger cash flow and a less of a chance of getting behind on the payments to begin with.