More to the point, the amount of debt through refinancing/cash out financing has No effect on the sellers cap gain tax.

If he wants to force you to sign a contract to buy as is then you can bet there is termite damage.

Asking Price 215000 Primary Inputs Purchase Price($) $ 190,000.00 Downpayment(%) 3.5% Units(#) 2 Monthly Rent($) $ 1,150 Occupancy Rate 75% 30 Year Loan Rate(%) 4.50% 15 Year Loan Rate(%) 3.90% Secondary Inputs Closing Costs(%) 6.0% Property Tax(%) 1.8% Insurance(%) 0.8% Maintenance(%) 10.0% Property Management(%) 10.0% Improvements($) $ 20,000.00 Closing Costs($) $ 11,400.00 Inspections/Misc($) $ 600.00  Value (30-Year Mortgage Scenario) Monthly Rent $ 1,725 Annual Rent $ 20,700.00 Value Per 2% Rule $ 86,250 Value Difference (2% Rule) $ (103,750) Annual NOI $ 13,800 ROI (Pre-Tax) 8.36% ROI (Post-Tax) 8.1% CAP Rate (50% Rule) 7.3% CAP Rate (Assumed Expenses) 6.0% Annual Expenses Annual Property Taxes $ 3,420 Annual Maintenance $ 2,070 Annual Insurance $ 1,520 Property Upkeep/Other $ 200 Property Management $ 2,070 Total: $ 9,280  30-Year Mortgage Results Money Down $ 38,650.00 Monthly Gross Rent $ 1,725.00 Monthly Loan Pmnt $ 929.01 Effective Rental Income $ 20,700.00 Annual Loan Pmnts $ 11,148.09 Annual Expenses $ 9,280.00 Total Expenses + Loans $ 20,428.09 Annual Cash-Flow (Pre-Tax) $ 271.91 Annual Return (Cash-Flow + Equity, Pre-Tax) $ 3,229.76 Annual Post-Tax Cash-Flow (Pre-Tax) $ 190.34 

And @Wayne Brooks, most condos cover damage and repairs to the walls and structure of the unit and that's it, as was the case here. 

Also, I have seen some things about Due on Sale Clause, but I'm not sure how that would effect anything because there is no sale until 18 months later. 

7 habits of highly effective people The monk who sold his Ferrari

@Mike Dorneman how do you manage that effectively when using oil for a multi-family?

What’s the most cost-effective way to completely remove the cigarette odor from the property?

By keeping in LLC's does that not effect my personal credit and financing capabilities?  

You want to find that out as well, because if you can reduce expenses effectively, obviously you've increased your NOI.