First apartment complex analysis

[Justin Bell]

Hello everyone. This is my first post on biggerpockets as I am new to real estate investing.  I am currently analyzing a 20 unit (12 two bedrooms and 8 one bedrooms) all brick apartment complex listed at $850,000.  After speaking with the seller, who is an 72 year old real estate investor looking to move on to the next chapter of his life, he give me some information about the property: rent roll is $103,000 annually, occupancy is 100% and currently there is a wait list, there is no property management company (he manages the property himself), cap ex, insurance, and taxes are roughly $21,000. the 20 unit complex is split among three building where two building have roofs that are eight years old and one building's roof is 18 but "in perfect condition", each tenant is responsible for their own water, sewer, electricity leaving the seller only responsible for taxes, insurance and upkeep.  He is also offering owner financing up to 80% of purchase price at 6.5 % amortized over 20 years. I am not sure I am interested in that because I can get a traditional loan at a cheaper rate. The seller said he would rate this a Class A property so there could potentially be little value add, but it would cash flow.

Can I please get some feedback analyzing this deal?  Should I pursue it?  What would make this deal go from good to great?  What are some other good questions I can ask the seller? 

Any and all suggestions are much appreciated!

Thanks,

Justin