I need Direction!

[Travis Fitzwater]

All right, I need some help.

I have the opportunity to bid on a property that has been reduced on price about 17.6%. It has been on the market since December. It is a 24 unit apartment complex with a contract with HUD until 2018 for 100% rent payments each month with another $48/unit going for utilities. The complex was built in 1982. It is in a community with 88% occupancy of housing and around 2500 residents. In my estimation, the occupancy has been between 80-95% for the last couple years. The owner may consider owner financing up to 30% so that I could get a loan for the rest. The monthly rents are $325+48 (util.) per unit. An allowable 5% increase in rents is allowed per year. The cap rate is around 8%. It seems like a great deal. Selling price is negotiable at $700k. There is a property manager. Last years NOI was, I believe, around $53k. The expenses round out to around $49k. The Gross Income was about $99k. Someone please let me know if there's something wrong with this deal. I also live at least 3 hours away from this property but it seems like such a great deal. It's owned by an investor who wants to go bigger, and I don't think he lives in the area, I believe his property manager takes care of everything.

I really want to get into investments, and I want to get started. I feel like I've read as much as I can.

Thanks!

Travis