What you think about this deal

[Dennis O. Evans]

Hello BP family

I found three buildings it has 7 units 5 commercial 2 residential it gross $5200 a month he pay $800 in insurance, $250 in taxes no expense number. The owner is asking 350k he will owner finance I give him 50k down he will finance 300k for 25yr @ 10% a balloon in 10yrs. It is fully occupied. The building in a 2 block radius is going for 99k to 158k. High traffic area three tenants been there for over 3yrs. They pay all utilities. They divide water bill per building.

What you think Bp family. What I'm I missing.

I'm going to do a walk through Sat with a contractor to make sure the buildings are structurally sound.

[Joe Villeneuve]

If your numbers are correct, and depending on the rehab needs, it looks pretty good to me.

You'll recover your DP within 3 years, so the cash flow from years 4 - 10 should be all profit.

The issue is going to be the balloon payment.  It will be pretty close to $300k when you hit that 10 year mark.  Before you go into this deal, you better have a plan for how you will be paying off that loan balance...and don't say, "I'm going to get a loan".  That could very well be how you do it, but if that's what you're depending on, and you can't get it, what happens?