12 unit deal- please share your thoughts if deal or dud

[Anna Sam]

Hello Everyone

I am working on a deal and wanted to find out your thoughts on this deal - whether its a deal or dud.

how much down is the most to put in for a owner financed deal.

its a 12 unit deal condos Price is 425k   each unit  renting for $575 per month. 

seller wants 140k to carry for 7 years. 

pretax cashflow is $75/unit on a conservative analysis and a 10% cash on cash return.

Please share your thoughts on the deal. 

Thanks

[Jamal Okon]

I have two condos and will never buy another.  As an active member of both Condo Association Executive Boards, I know that exit strategies are key.

1. How much delinquency is there in the community regarding condo fees? This impacts if FHA/VA will finance purchase from owner occupants. Above 20% be careful.

2. How many owners vs. renters/investors occupy these units community-wide? This will also affect financing and overall value in the community.

3. Lastly... Condo fees ALWAYS go up.

This is just my perspective, and I'm sure many people make tons of money from condos.  Good luck!