1/2 Duplex Deal - First Rental Purchase

[Dane Peterson]

Today I met with a motivated seller who is about to move out of state for work purposes.  Owns his 1/2 duplex with no mortgage.  Asking is $80,000 and would be considered retail Asking price being that it's a 1/2 duplex.  Move in condition that has been upkept, with only a Roof needing replacing in about 4yrs (which could be fun working with the other owner "sarcasm") and exterior cosmetics.  Could also use a fence in the back to divide the backyard for tenants.  

I'm trying to get the seller to offer Seller financing with only a downpayment of around 8-10% and a straight fixed payment structure until note payoff of 10years.  I want to make sure he gets the cash he needs for his move other expenses and that I cash flow from the beginning.

I should be able to quickly rent the property at $1000/mo if not more.  About 1,100sqft, 3/2 with a lot just under 9,000sqft (not bad lot size for a 1/2 duplex). 

What are your thoughts on this type of deal for a 1/2 duplex?  I don't mind the 1/2 duplex, as I'm starting out and more concerned about the paydown of the property while netting at least $300/mo in positive cash flow.  

Pros:

-Won't show as a mortgage and I can put in my LLC vs showing personally to creditors

-Property needs very minimal upfront costs to make tenant ready <$3,000

-Positive cash flow allowing to build equity and a reserve fund.  

-10yr paid off property

-Potential to buy other 1/2 of property

Cons:

-Can't control neighbors of upkeep of other 1/2

Thanks for feedback!