Advice on a Multifamily deal

[Tim Broxholm]

BP community! 

I am using tools and education that I'm picking up in BP to build my RE portfolio.  I am working on some out-of-state opportunities.  My agent found an off-market deal for an 8-plex. I received initial information about the property ran the numbers meets both 50% rule and 1% rule and has a cap rate of about 6.5%.

One of the strategies I heard on the podcast was to inquire about owner financing since. The owner is interested and said they would be willing to-do owner financing for 5 years (contract for deed) with 15% down at 6% interest. The seller shared they re-structured their ARM loan 2 years ago for a period of 7 years so there is 5 remaining.

Would love the advice of some seasoned investors around:
1. What are some questions I should be asking if my goal is to cap the downside and maximize the opportunity?

2. Based on the current info are there any concerns about the initial terms you'd lean-into for deeper analysis? 

3. What are the next steps you would typically take to advance a deal such as this? 

4. Good, bad, ugly on owner financing and/or contract for deed on a deal like this.

Thanks! 

Tim