Hello Everyone!

I have an opportunity to purchase a fully occupied four-plex near me from a long time-acquaintance/friend.  He is winding down his real estate portfolio (he's in his 70's now) and is willing to seller finance the deal with a minimal down payment.  We are in the very early stages of discussing the sale and I was hoping to get some input from some of the awesome people here at BP! I'm a new investor, I've had one single family rental for a year now so I still have a lot to learn.

We are meeting for coffee soon to start discussing specifics... So I'll be asking about the tenants, current leases, rents, property expenses, and financing arrangement. Am I missing anything? Any tips, suggestions that you would recommend to make this process go well?  Thanks!

Without knowing the details, as well as not knowing your market, it is hard to offer specific advice on exactly what you should and shouldn't do but the few pieces of advice I can offer are pretty universal. 

First, do the math yourself, when he gives you the numbers and details of the property I would run them through the BP calculator to see if it really is a cash flowing "good" deal. 

Second, don't be so eager you try to make a deal out of something that simply isn't a deal. You are excited, I understand that and encourage you to pursue this business but not into ruin.

Third, the smell test for this thing should be the 1% rule which you can look up on BP for full details and in depth info. If it doesn't meet the 1% rule then you really have to factor in more details like appreciation, the market, cap rates and exits to the property itself. 

Fourth, you said a "small" down payment but what exactly is that in dollars and what part of your liquid reserves and total net worth does that represent?

Fifth, do you have property managers info? Do you plan on managing the property yourself? How recently has it been updated, what does the HVAC and roof look like? What kind of capital are you going to have to put in to rehab any units that might need it upon tenant turn over? 

I will leave you all this to chew on but I wish you the best of luck and hope this is the first of many great deals in your future! If you have any specific questions, if you have any details you want us to review, anything at all post it here and let us all help you build your business!