23 Unit complex in Sioux Falls, SD

[Kully Millage]

Hello, I have a 23 unit complex under contract in Sioux Falls.  It is right at that 1.4m mark, brick structure, built 1980, and generates 800/m per unit.  The owner is 80 years old and is the original owner / builder of the property.  Really neat guy that I have had the pleasure of getting to know!  My question is as follows:

As a first time multi unit buyer, I am struggling to figure out the best way to buy.  Should I buy it myself- with a conventional investment loan at 20 percent down?  Should I split it with a partner 50/50 and split the down payment costs, potential maintenance consts, etc?  Should I try and work out creative financing with the owner, possible down payment with interest and balloon payment?  Perhaps I pass all together and let someone with more experience step in and buy it because I am in over my head? 

Obviously I understand calculating your CAP rates, figuring your upcoming updates/ maintenance, and crunching all of the numbers.. I am looking more for your simple answers, if that is possible.

Feel free to leave your two cents... 
 

[Nathan Gesner]

Isn't a partial deal better than no deal at all?

if this is a good investment, I would find a way to partner with someone and move on it. You would be sharing profits but your portion would still see the same % return as it would be if you invested the entire amount. 15% of $200,000 or $50,000 is still a 15% return.

Built in the 80s means everything is at the end of it's life...or has already been replaced. Do your research.

i agree Seller financing would be the way to go for both of you.