Non Performing 6 Unit Building - Valued 138K ??
I own a few 2 family properties that cash flow ~$300 per door. I've been able to purchase them well below market value and modestly rehab the units to produce top rents. I know I bought these at the lowest price points.
I'm trying to acquire a larger apartment with seller financing. It's a 6 unit building, in a slightly less desirable area (compared to my other rentals). It's $36k down and the seller will finance balance $102k at 5% for 10 years ~$1100mo. I think that's good financing from the seller, but the building is currently vacant and needs minimum repairs of $1k per unit and $8k roof. Gross rents $3650 per mo.
So do you think buying at high price point with some repairs needed is worth it with the generous seller financing? Using OPM for entire purchase of $138k would only generate $200mo. cash flow for WHOLE building. But in 10 years it's free and clear.
Any comments or thoughts are appreciated.