Buying 7 town houses from a non-profit, for $60,000?!?!?!?
Hey Everyone!
Im a 25 year old that has recently jumped into real estate while working a full time job. I currently own a four-plex and have pretty good knowledge on real estate.
I am from a small town in the midwest of 650 people. I no longer live here but know alot of people from here and there is a Non profit that owns 7 duplexes that are all 1bed/1 bath. My uncle and I have talked to the president of the non-profit and they are interested in selling it, and would take what is currently left on the mortgage for the sale since they would disband the non-profit. (Roughly 60-70k)
My Questions are:
1. Is this legal? ex. they are obviously selling it at way below the value of the property, can we benefit from this?
2. If i did this I would buy it with cash and then refinance for the actual price at 75/25 loan and invest in more property. Smart??
3. Anything I should be worried about? (These are 100% occupied and could cash flow at 50% ocuupancy)
Thanks in advance