Canton, CT off market 4 family advice.
I recently purchased a 3 family 1 year ago and I have kept in close touch with the seller during my first year owning this Bristol, CT property and would like to think of him as a mentor but don't know him personally. He has approached me to do a electrical service upgrade on a 2 family in unionville and a 4 family in canton. During our conversation I mentioned I would like to buy a property in those areas. He said I may have something for you. I'm buying a package deal I acquired through direct mail marketing. A week goes by and he tells me the deal was 5 properties but he can only take on 4 because it's a big load to handle at once in terms of rehabbing them. The lot has 1 two family that rents for 835/750 and 2 single families that rent for 900/940. With minor upgrades and some TLC the house could rent for 1k,1k, 850, 850. All 4 properties are fully occupied with good tenants. He says the same owners Will owner finance the 5th property to me for 180,000$ which is the price they agreed on from 200,000$ @ 10% down @ 5% interest 30 year Loan with a 10 year balloon. Currently the property rents for 3,425$. Taxes are 6340 but he says I can get them lowered. Insurance is 2400$/ year. Obviously the property cash flows great. The house needs some structural improvements but I'm not worried about that. My MAIN CONCERN is the well/septic. The house uses 1 well for all four units. He mentioned that he believes there isn't any issues with the well/septic and the house is a soiled deal. I can't trust his word as its business to him. I am going to get a well/septic inspection. I'll pay the 1000$ just to be safe. I'm going to look at the house tomorrow. The owners want to close asap. I'm very concerned he is just using me to complete his deal and knows something that I don't. I don't want this to ruin my investing future if there is something that could really be wrong with the property. This property is in a B+/A- area close to collinsville center. Your opinion is greatly appreciated!