How to structure a little-to-no downpayment loan on a rental?

[Brandon Kelly]

BP Community,

I am looking at an off-market property that is a SF home, and currently a collegiate rental.  It has been a collegiate rental for MANY years, and the current PM that showed it to me yesterday has been in charge of it since 2018 with no gaps in renters.

This home is in fantastic shape....new services throughout, no exterior issues, nothing.  Sure, a couple of minor 'tweaks' could be done, but as it stands, it's a legal 4BR that brings in $2500/mo.  The lease (with the current college students) was just renewed through their 2025 school year.

I'm trying to figure out how to make this happen with little-to-no money down, as I have other 'irons in the fire' at the moment.

I'm planning to offer $400-450k for the home, and am trying to structure something where a conventional lender would loan an amount that would be covered by the current rental rate (lets just say $300-350k)...   ...then, anything outside of that amount, would be carried by the Seller (for a short while)...   ...Seller financed with a ballon in 5-years?  

Any creative ideas on how to make this happen?

Thanks in advance!!

Brandon