The owner financed position is a potentially zero interest loan that should be considered.Another quick note: consider leasing his land with an option agreement as well.

But sounds like you have more due diligence to potentially do.

Focus on the numbers, finding/buying/creating an opportunity, and maximizing the potential.

Based on current rent not potential rent max price should be 900k to be able to cash flow property. 

I'm with you @Noah Laker , I think there is huge potential in college towns and mid-to-large cities so long as you do your homework on the legal side.

Does not matter from whom you borrowed and where they got the money to lend you.Third, their situation is potentially problematic.

Outdoor space, including parking, living areas, and potential expansion, can enhance the property's appeal.Location should be considered, as properties closer to tourist attractions may command higher rental rates but may also come with higher purchase prices.

I also considered the appreciation potential.

Unfortunately, I don't think one exists.If you exhaust your potential down payment for a future primary residence by buying a multi-family now, then ... you can't buy that future primary residence until later.If you're running the numbers, and they ain't working, then you've got your answer.

Making that first investment in real estate can feel like a big leap, especially when you're considering factors like your savings, potential risks, and the market conditions.