Considering buying a Multifamily with owner financing.
I'm new to Biggerpockets forum!
I'm a young ( 30yrs old) real estate broker in Kentucky/West Virginia and I currently have 4 rental properties( three homes and one duplex) that I have obtained over the last 4 years through traditional financing.
I have an opportunity to purchase an 8 unit apartment complex( 2br/1ba built in 1970's) for $400,000 ( 50k a unit is a premium price for my area) through owner financing at 4% over the next 30 years with no money down. The person I'm purchasing it from I trust and I have done business with before and he has provided financials for the last four years. The complex is completely occupied however it will need a new roof within the next 3- 5 years. The complex is near a hospital and high school and is considered a good area. The complex on average has a gross income of 50K. After all expenses( landlord pays for water and sewer) are paid and I will net around $1000 dollars a month ( not a lot of cash flow).
I understand this a long term investment and a lot of debt. I also understand this a unique situation with owner financing. My biggest objection to this deal is the low cash flow with the high debt. However, on the other hand I am making some cash flow each month and building equity on a deal that I would never have an opportunity to purchase otherwise.
What are your thoughts?