The financing option was:1) 5% owner occupied2) 25% investment purchase with 5% from us and were going to get the remaining 20% down from mother-in-law HELOC.

The key is to find those off market distressed/motivated sellers through marketing, advertising and your network. 

It seems as if the seller is clearly motivated.  

Therefore, I'd need to finance the remaining $150k. 

I would say the price is already below market and without a rent increase they will continue to remain below market.

Say there is a 4 unit property where each unit is the same size. 3 of the 4 units are occupied the entire year and the remaining unit is vacant the entire year.

I am fairly new at investing and have a motivated seller friend who is in a tight spot.

(Although it’s in good condition and rent ready as is).Take remaining capital and purchase another SFH to now live in, turning previous into rental.

Find a Motivated SellerA motivated seller will have a problem with the property and want to get out from under it fast.Marketing: Strategy and Target PopulationFirst you will need to determine a marketing strategy to find properties to acquire.

They can wick it up 2-3 feet if they remain in contact with liquid.