Or do the lease option and find a private investor to fund me the pay off for the mortgage, give the owner and her family some cash to move out and some cash to at least renovate three of the units and then after 12 months refinance and pay off the investor (I should have the building fully rented within the year and have my credit together).

If he does, I think the best route is going to be contacting local banks and then moving up the scale to private money. 

I am 90% confidant I can get money for the house plus the renovation costs (from traditional bank financing and/or private money and/or HELOC on my property) but there is always the change that I cannot. 

If you have to get private money loan at 7% then you will need $265,000 for down payment.

I earned my CPA after college.I currently work as a real estate financial analyst for a multi national private equity real estate firm, but have a strong interest in starting my own real estate investment practice.I am very impressed with the information available through the podcasts and forum posts.

I'm also seeking private money lenders to do REO and short sale deals for mainly flips and buy and holds in my general area. 

I'm a Licensed Realtor in the Los Angeles region who analyzes and extracts Bulk data from MLS and private listings to determine the best Cash Flow, Rehab, and high ROI properties currently on the market.Looking to create a team of like-minded people interested in sharing the knowledge, experience, and wealth that Real Estate Investing offers. 

This conversion would allow the now 1 bedroom unit (converted from studio) to have private access from the exterior.

send a me private message with MLS number so I can do a quick analysis

What is a better offer: 1) all cash (show proven available amount at offer) for $140k or 2) a $145k financed offer with me waiving my finance contingency.I think I can come up with cash but it would tap me out plus it would come from a few other private money sources.