Help with Analysis of Multifamily

[Tony Thomas]

I’ve been presented with this deal. What are some red flags I may be missing in evaluating this?

TERMS

- Deal Type: Seller Finance

- List Price: $580,000

- Purchase Price: $780,000

- Seller Carryback: $693,000

- Total Entry: $100,000

Breakdown:

Assignment: $13,000

Down: $87,000

- PITI: $2,657

Breakdown:

Principal & Interest:: $2,000

Taxes: $464

Insurance: $193

- Rent: $5,250 ($750-800 per unit)

- Amortization Years: 28.88

- Interest rate: 0%

- HOA: NONE

- Balloon: NONE

- EMD: $5,500

- COE: Feb 12, 2025

- Occupancy: Occupied, Occupants staying post closing

- Title company:

PROPERTY DETAILS:

MULIT-FAMILY

7 Units - 2B/1B per unit

- Living sqft: 5,200

- Year Built: 1940

- Age of Roof: 1

- Age of HVAC: New

- Age of Water heater: New

- Condition of Electrical: Good working condition

- Condition of Plumbing: Good working condition