I have the opportunity for what seems like a good deal, but finances are tight.

[Ethan Ruttan]

I have an opportunity to buy a property from family in Adams, NY through seller financing. It is 5 total units; 2 duplexes and a barn that has a business operating out of it. They want $300,000 for it at 3.5% for 15 years. They also aren't requiring any down payment; so those terms make it seem like a pretty good deal. The numbers aren't currently good. Both units in the duplex that the owners were living out of are vacant. The business is only paying $1000 a month and one of the units in the occupied duplex has another family member living in it paying only $400 a month. So, as it sits I would be in the hole $1400 a month, not factoring in snow removal. One of the units needs a littler bit of work so I planned on living out of it for the summer to work on it. If I get the other vacant unit rented which is a good size 1 bedroom, 1.5 bathroom apartment I think that will bring it down to -$500 to -$600/mo. If I rent both out, instead of living there, I believe I could be about +$500 a month. I could also the raise rent on the family member slightly (+200/mo, which would still be a good deal for them) and bump up the rent for the business, because 1000 seems quite low, but I also don't want to make them leave because it may be pretty hard to find another business to operate out of there.

I already have one duplex that is cash flowing so I'm not completely new to RE investing. But, since I've never dealt with seller financing before, I didn't realize some of the upfront costs. I'm running a little low on cash and I'm going back to college starting this summer so I'm not sure how much I will be able to work. So, the upfront cost are higher than I expected, one of the units need a little bit of work, and the cash flow is starting at a negative. With it being a deal family I also don't want to have problems making the payments and hurt that relationship; even though backing out at this point would probably also upset them. How good of a deal is this, and is it worth the hassle that its going to take to get to its full potential? Also, this is a question more about personal life advice; is this opportunity worth stretching myself super thin to make it happen especially with going back to college and needing to pay for that, or should I pass this up and focus on college for now? I would greatly appreciate any advice I can get on this decision, thanks!