How to structure seller financing on an 8 unit
I have an opportunity to purchase an off market 8 unit deal. I have spoken to two banks and they will only do 25% down and 1.35 DSCR (Debt Service Coverage Ratio). The bank will only lend up to $390k. The asking price is $660k and at 25%, I do not have near $165k to put down. I will continue to look at other banks.
What I do have is $45k cash, and a detached single family home rental property currently valued ~$215k with a loan balance of $126k. I am considering refinancing it to pull the cash out.
My main question is, how can I 1) approach the seller to do seller financing and 2) how can I negotiate and structure it to be fair to both parties step by step?
See below for the figures.
Asking price: $660k
Gross income: $74,412
Cap rate: 7%
Any insight would be greatly appreciated!