Denver Metro Duplex - Finance question

[Tom Horan]

Hi BP - 

I have a couple of leads on multi-family properties in the Denver Metro area that I am working on. There may be a post on this already, but I am having trouble getting a really strong understanding of how this process works. How to use owner financing when the owner does not own the property free-and-clear. Ultimate challenge being coming up with a large down payment.

For this example, the owner owes 100k and the property is worth 425k. Other than coming up with 20%+ down on the full amount, how could owner financing play into this situation to limit the amount of capital required upfront? Is this even worth trying for or is it better to find private money to help with the down payment?

Thanks in advance for your insight.