I'm really struggling with a potential deal I have going right now and need some opinions. I will try to make the story as short as possible. Quick background on me: I have 5 units total (I am house hacking a flat and have a triplex) so I am hardly what you would call a seasoned investor. Anyways, I found a flat on Craigslist (I'm in Erie, PA) which advertised seller financing which intrigued me. I reached out to the seller and set up an appointment to view the property. Afterwards, we sat down at a local McDonald's to talk turkey. We talked for about 2 hours and I quickly realized this guy would be a PERFECT mentor. He was very gracious with his time and answered all of my questions and he even revealed that he was previously a board member of the local apartment association (of Northwestern PA). I was so stoked to meet and talk with him. Towards the end, I told him that I wanted to pursue the property. He basically told me what he would do for me (finance it at 6.5%) and I would need the typical down payment. He walked thru the numbers with me to show me it cash flowed. It felt like he didn't even give me the opportunity to negotiate the terms (I'm def. okay with the interest rate but the property is overpriced for the neighborhood).

I understand he is a professional and obviously very good at what he does. I also understand that it COULD cash flow, if it was a perfect world (needs a lot of work/repairs), so it might not necessarily be a BAD deal for me. BUT today I go to get the inspection, and there are a ton of issues AND I find a few holes in his story (for example, he said the tenants pay the water bill - talked to the tenant, not true). To be honest, if he doesn't work with me on the inspection items, there's no way I would do the deal normally. I will say this tho, he has ALREADY provided an immense amount of value to me (for example he gave me the addendums he uses in his lease and some of the strategies he uses to maximize his profits) and much more. He has even said that he would be open to throwing me deals in the future. I've only known him for a week but he's already helped me take care of a situation that I have not dealt with before (tenant in prison).

My question to BP is - This is a guy who could be HUGE for me as I am so early on in my investing career. Is it worth it to take on a less than average deal in order to maintain a good relationship with this guy? Should I risk losing his friendship/mentorship because I back out of an average deal?

Hope this isn't a dumb question, just really need some help!

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Mentor VS average deal

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