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Multi-Family and Apartment Investing

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Zigmunt Smigaj
  • Rental Property Investor
  • Colorado Springs, Co
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39
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Good or Bad Owner Financing Apartment Deal?

Zigmunt Smigaj
  • Rental Property Investor
  • Colorado Springs, Co
Posted Apr 21 2014, 13:57

Hello BP Ninjas,

I'm looking at a 10plex renting for 500 per unit fully occupied (zip 36303 AL). Seller wants 500k with 10% down on owner financing. Term will be 30 year but balloons at 3 years if I dont find my own financing through a bank. All the commercial lenders in town want 20 year amortized schedule with 20% down (which I dont have), and if I did the mortgage would be too high.

These are the numbers. Under the 50% rule by $200. So after 3 years I will only have about 30k to finance with.... yet 20% down on the remaining 450k will be 90k... which I dont have. I need some advice on how to negotiate this better or evaluate the deal and find out my max offer.

Also should I get a lawyer involved and set up LLC for this?

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