Duplex Deal Question

[Brynt Rushing]

Hi BP I have a question about a duplex I’ve been offered to buy. It is located in my rural town of around 15000 people. Both units are 2 bed/1 bath currently renting for $775/month each. I purchased the duplex across the street and have total $100k in after remodel. I raised the rents to $900/each (I think actual market rent is around $850). The property I’m looking to buy was offered by the same seller off market for $110k. It’s in good shape other than paint and a fence and is 100% occupied. The seller has offered to finance the deal for me at 5% interest over 15 years with $20k down. My taxes/insurance come to around $250/month and the note would be $712. I was thinking of asking for interest-only for the first year (I would recoup 50% of my invested capital this year and the rest over the next 1.5-2 years). My partner in the deal doesn’t like that we’re paying $110k and having to put 10k in on top since that will put us $20k higher than we have in the property across the street. In my opinion, the pros of seller financing/being across the street from a property we own/area that is appreciating and 2 minutes from the interstate make this a good deal even tho it’s slightly less cash flow. I told my partner I would make the post to see what you guys think. Any advice is greatly appreciated!