It's all about the cash flow and you don't have enough info here to really provide good feedback. Roughly your gross income is $48K and expenses are probably going to be at least $25K. What about R&M, Capex, etc.? Make sure your consider all opex and then create a capex schedule that will give you a rough idea of remaining life of capex and what their replacement costs will be. At 400K with financing your numbers are getting skinny quick. Without really looking close at numbers I'm guessing you need to be at 350K PP or below to make this cash flow and worth your time.
@Leon Henry Can you swing the 25% down?
You are paying 66,000 per unit for 700 per month in rental income. How does that compare with the rest of the market?
If this is an A property, then owner financing is usually not an option.
Make sure the expenses are accurate, 200 for water/sewer appears very low.
This deal sounds too tight...would need to drive down purchase price in order for it to work.
Pittsfield is a great market for undervalued, high quality buildings. We looked at a beautiful mill building some years ago, but the owner wouldn't part with it for a reasonable price--so we walked. Let me know if you see any big building opportunities--we'd love to partner with you @Leon Henry.
$20,000 less in price should not make or break the deal. If it's not worth $420K, it is certainly not worth $400K. There should be no doubt in your mind that $420K works or doesn't work.
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