Purchasing a small Property Management "company"

[Brandon Mattila]

Looking for some advice. A family friend approached me about purchasing his property management "company". It isn't really a company as much as I would be purchasing a line of business. He only manages 11 properties for which he averages about $95/month in gross property management fees amounting to a little of $12,000 annually. He wants $15,000 dollars for the accounts with $7,500 up front (I would try to negotiate down the "down" payment) and the remaining balance to be paid over the course of the next two years, or whatever I decide. All of the properties are pretty high end so they are relatively low maintenance and the investors are all very good at responding to maintenance issues.  I have a couple rental properties of my own, I am a licensed realtor, and I think it would be an opportunity to get my foot in the door with property management as he would also mentor me for as long as I needed. However, there are some pretty legitimate concerns: 

- One investor holds six properties so if that relationship doesn't work out then that is half the value of the business (He will set up meetings with his investors prior to the sale to make sure they are on board and I of course would want to meet them) 

- Everything I have seen says that you shouldn't even consider purchasing a property management company unless it has 50+ properties and is a more established business. 

- He is stating an average of 10 hours of work for managing the companies. As this would be a side hustle, I wonder if I have the time, or if it is even worth the time I would put in for 12-15k a year. I am hoping I would be able to streamline some things and grow the accounts. 

I realize this is limited information, but I am hoping for some honest feedback on if this is something worth considering and if so, how to structure the deals. Thanks in advance.