Buying 7 town houses from a non-profit, for $60,000?!?!?!?

[Cole Johnson]

Hey Everyone!

Im a 25 year old that has recently jumped into real estate while working a full time job. I currently own a four-plex and have pretty good knowledge on real estate.

I am from a small town in the midwest of 650 people. I no longer live here but know alot of people from here and there is a Non profit that owns 7 duplexes that are all 1bed/1 bath. My uncle and I have talked to the president of the non-profit and they are interested in selling it, and would take what is currently left on the mortgage for the sale since they would disband the non-profit. (Roughly 60-70k)

My Questions are:

1. Is this legal? ex. they are obviously selling it at way below the value of the property, can we benefit from this?

2. If i did this I would buy it with cash and then refinance for the actual price at 75/25 loan and invest in more property. Smart??

3. Anything I should be worried about? (These are 100% occupied and could cash flow at 50% ocuupancy)

Thanks in advance

[Carson Wilcox]

sounds like a freaking jackpot to me.  Legal on your end?  Yes.  On their end... probably LEGAL, but not the best they can do... But then again... what do they care....?  Go do it.

As for financing $ out...  that all depends on your risk tolerance and profit % of the next thing vs the loan costs.