10 unit deal.

[Jonathan Ramsuchit]

Hi everyone!

I am looking at a 10 unit purchase, 9 units in one building and one separate home. All but 1 unit occupied

list : 399k

GRI : 77k

Vacancy : 10% =8k

management : 10%= approx 8k

reserves 10% = 8k

taxes = 8k

insurance = 4k

loan terms: 20 year @5% with 25% down = approx 23k

It was built in 1904. the area is low crime, right next to an elemetary school, and the area doesnt have other buildings like these. It seems too good to be true!

My concern is an investor is selling this property, so why are they walking away from this gravy train unless something is wrong? The Realtor said a business partner is moving but that can be just a made up story. How should I approach this.

I'm 23 years old and personally have no exp in rental real estate. I have been reading and listening to BP for months now and have a BA in Finance. My father owns 3 rentals and is an electrician who is extremely handy and knowledgeable in that area. Its very scary to plop down nearly 100k on a property but with such a great return, it is extremely tempting.

Feel free to offer advice/ criticize as harsh as you possibly can :]